What The Global Bond Indices Inclusion Means For Indian Economy: Motilal Oswal's Take
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
The noise around the inclusion of India’s sovereign bonds in global bond indices is growing stronger.
In this note, we discuss our views on the likely impact of such an inclusion on India’s domestic bond yield, the Indian Rupee, and economic growth.
Assuming ceteris paribus, the impact of the inclusion is pretty straightforward.
Higher demand for Government of India securities would raise prices, lower bond yields, and strengthen the rupee.
With a lower risk-free rate, it would have the potential to reduce the cost of borrowing across borrowers.
Nevertheless, there would be no ceteris paribus and hence the actual impact would not be so straightforward.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.