HSBC Says Indian Bonds Set for New Era With $100 Billion Flows.

HSBC Holdings PLC; BONDS (Finance); GOVERNMENT securities; INVESTORS; FISCAL policy; DEVELOPING countries; SOVEREIGN wealth funds

According to HSBC Asset Management, Indian bonds are expected to attract around $100 billion in foreign inflows in the coming years due to their inclusion in global bond indexes. This includes an estimated $50 billion from global indexes and a similar amount from large institutional investors, sovereign wealth funds, and pension funds. India's fast economic growth and its positioning as an alternative to China have made it an attractive market for Wall Street investors. The country's monetary and fiscal policies have also helped build credibility and set up its economic performance for the future. The rush of foreign money is expected to increase as India's sovereign bond market is included in JPMorgan Chase & Co.'s emerging markets bond index in June. Foreigners currently own only 2% of government bonds, making India a stand-alone investment destination. The 10-year bond yield in India is the highest in emerging Asia, making it an attractive option for diversification and economic stability. [Extracted from the article]

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