India’s index inclusion could herald future flow shifts
Limited boost to FX flows after Indian govvies debut on JPM index may change as others follow suit
India’s inclusion in JP Morgan’s emerging markets index in June has had a limited initial impact on foreign exchange flows for the rupee, say traders – but that could change dramatically as other index providers follow suit. Inclusion in a widely used Bloomberg index from early next year could give a particularly big boost to flow volumes in both bonds and FX – possibly to the tune of over $100 billion.
JP Morgan included Indian government bonds (IGBs) in three of its emerging markets bond
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