#JPMorgan #BerkshireHathaway #FTSERussell⠀
🔥 India is included in the index: we are waiting for profits
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JPMorgan Chase & Co is set to include Indian government debt in its benchmark emerging markets index in June. Global funds are investing approximately $1 trillion ahead of this event, into Indian assets denominated in rupees.
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The move also means JPMorgan can claim greater diversification after excluding Russia and amid ongoing concerns about geopolitical tensions between the US and China. Indian bonds offer some of the highest yields in emerging markets.
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India began liberalizing its economy back in 1991, but it does all its borrowing in rupees, as it wants to avoid dependence on the dollar. But at the end of 2019, the country decided to reduce borrowing costs by creating additional demand. As COVID-19 devastated the economy and the government borrowed record amounts to finance a multibillion-dollar stimulus package, India risked opening up part of its debt market to foreign investors.
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JPMorgan says it includes 23 Indian bonds in its index with a total par value of about $330 billion. Bloomberg Index Services Ltd. from January 2025, will also add Indian bonds to its Fully Accessible Route, then all that remains is to conquer the EM debt index from FTSE Russell.
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By the way, Berkshire Hathaway previously invested in the Indian company One 97 Communications Ltd., which owns the payment company Paytm, but exited it last year through a blockchain deal worth $164 million. However, the legendary Buffett said that in India there are “mass opportunities,” but he leaves them to the discretion of future “more energetic” leadership.
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Are you ready to invest in India? Think about it, it can be very profitable!
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Profits to y’all!