JPMorgan’s fresh inclusion of India in its emerging market bond index will fuel an estimated $40 billion in inflows, according to Goldman Sachs.
Last week, JPMorgan announced that it would include India in its emerging markets bond index in June 2024. This is a much-anticipated move that is expected to attract foreign investors.
And according to a Goldman Sachs note, India’s inclusion could result in $40 billion of inflows into its bond markets over the next 18 months. This includes passive flows of around $30 billion and active flows of $10 billion due to investor demand for yield and stability.
«The flows will be front-loaded, beginning immediately, as investors pre-position for inclusion next year. [S]everal EM-dedicated funds are already set up on India,» said the note, which was authored by analysts including Danny Suwanapruti.
