Inclusion of India in the Bloomberg Bond Index is expected to attract investment exceeding $5 billion…reports Asian Lite News
The decision to include Indian bonds in the Bloomberg Emerging Market Index, coming after the decision of JP Morgan to include India in the JP Morgan’s Emerging Market Bond Index, is a vote of confidence in the Indian economy, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Inclusion of India in the Bloomberg Bond Index is expected to attract investment exceeding $5 billion. This comes on top of the expected investment of around $20 billion in the JP Morgan EM Bond Fund, he said.
He said that including India in the EM Bond Fund is a declaration that India’s financial market is mature and stable. This is also a vote of confidence in India’s macro financial stability, he added.
Deepak Jasani, Head of Retail Research, HDFC Securities, said Bloomberg has proposed to add Indian government bonds to its various indices starting from January 2025. Bloomberg said it will include India Fully Accessible Route bonds in the Bloomberg Emerging Market Local Currency Government Index and related indices in a phased manner over a 10-month period, starting January 31, 2025.
Indian FAR bonds will be included in the Bloomberg EM Local Currency Government indices with an initial weight of 10 per cent of their full market value on January 31, 2025. Within the market cap weighted version of the index, India is expected to be the third largest country after China and South Korea, he said.
Meanwhile, a Delhi court on Friday ordered Bloomberg Television Production Services India Pvt Ltd (Bloomberg) to take down the defamatory article published against ZEE Entertainment Enterprises Ltd (ZEE) on February 21.
In relief to ZEE, Additional District Judge, Harjyot Singh Bhalla held that it had made out a prima facie case for passing ad interim ex-parte orders of injunction and directed Bloomberg to take down the defamatory article from its platform within one week of receipt of the order.
Bloomberg was also restrained from posting, circulating, or publishing the article on any online or offline platform till the next date of hearing.
ZEE, in its suit, argued that the Bloomberg article which mentioned details relating to the corporate governance and business operations of ZEE, were inaccurate in nature and led to a 15 per cent drop in share price of the company, eroding investor wealth. It said that the “false and factually incorrect” article was published, with a pre-meditated and mala fide intention to defame the company.
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