Day after Modi win, global investors pumped in $216 mn into Indian bonds

Modi's re-election put to rest any uncertainty about a diverse group of political parties coming to power at a time when growth is already slowing

The stimulus package announced by China and the optimism around the US-China trade agreement has further bolstered FPI sentiment towards emerging markets (EMs) as a whole

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Foreign funds “have no choice but to look at India now,” said Lakshmi Iyer, chief investment officer for debt at Kotak Mahindra Asset Management Co

Kartik Goyal and Ragini Saxena | Bloomberg

1 min read Last Updated : May 28 2019 | 9:59 AM IST

Global investors piled a net $216.3 million into Indian bonds on Friday, the day after Prime Minister Narendra Modi’s sweeping election victory.

The second-biggest daily inflow in two months turned foreign funds into net buyers of rupee-denominated notes for May, signaling the debt’s appeal may be rising as wagers grow that the Reserve Bank of India will soon add to its two interest-rate cuts this year.

Modi’s re-election put to rest any uncertainty about a diverse group of political parties coming to power at a time when growth is already slowing. The benchmark 10-year yield slipped as much as seven basis points