Business Standard

Global investors sour on Indian bonds as index inclusion stalls

The impasse has generated considerable uncertainty around when Indian bonds might be added to global indexes

Bonds, Masala Bonds

Ronojoy Mazumdar | Bloomberg
Foreign money managers are turning bearish on Indian debt after policy makers skipped opportunities to implement reforms needed to enter global bond indexes.
PineBridge Investments Europe Ltd. and Lombard Odier now expect Indian bonds to decline after this month’s budget didn’t address tax changes needed for sovereign debt to be listed on the Euroclear platform. That was seen as an important step in improving foreign investor access by index providers, including JPMorgan Chase & Co., who are considering adding the securities to their benchmarks. 

Instead, investors were told the government and Reserve Bank of India are taking a “very calibrated approach”

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 18 2022 | 8:43 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to