India is set to welcome billions of dollars of foreign inflows when JPMorgan adds the country’s sovereign debt to its emerging markets index on Friday, a move that some analysts say will leave it more vulnerable to fickle flows of hot money. The inclusion of India marks the first time the bonds of the world’s fastest-growing large economy have been included in a major benchmark and is the latest move to open up a once closed-off market.
those processes, in my experience, take time.” The addition comes weeks after Prime Minister Narendra Modi, feted by investors for market-friendly reforms, became reliant on coalition partners after his Bharatiya Janata party lost its parliamentary majority. The shock election result initially caused a spike in Indian yields and fall in stock prices, but the impact proved shortlived.