The Indian financial sector has witnessed a surge in activity following the inclusion of Indian government bonds in JP Morgan’s emerging market bond index on Monday. This development has sparked a wave of fundraising plans among numerous entities, keen to capitalize on the buoyant market conditions.
Among these entities is Nabard, which, guided by insights from Ajay Malglunia of JM Financial, is planning to raise Rs 18,000 crore via non-convertible debentures (NCDs) and bonds. This move follows in the footsteps of SBI’s infra bonds, which have set a precedent for other major banks in the country.
Banks such as REC, Punjab National Bank, and Canara Bank are also looking to tap into the market, inspired by SBI’s successful bond issuance. Kotak Mahindra Investments is another firm that has announced plans to raise funds amidst this favorable environment.
Venkatakrishnan Srinivasan of Rockfort Fincap LLP underscored the buoyancy of India’s corporate bond market and its recent inclusion in JP Morgan’s GBI-EM Global Diversified index. The inclusion in the index is seen as a significant event that has further bolstered the confidence of investors and financial institutions across the country.
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