Foreigners Flocking to India Bonds Make Splash Across Market
- FAR bonds gained since announcement, outperform this year
- FX reserves hit record, interventions to keep rupee in check
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Cash pouring into India from its watershed inclusion into key global bond indexes is already reshaping markets in a country long keen to insulate itself from hot money flows.
Foreign investors have pumped roughly 780 billion rupees ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.’s landmark announcement in September and are beginning to climb up the ownership list. The inflows are leaving their mark on a variety of assets, with corporate bonds outperforming peers and foreign exchange reserves hitting a record high. The rupee has shrugged off the impact of a broad strengthening in the dollar.