Foreigners dump Indian debt on oil jolt, missing index inclusion spark - kitco.com

Foreigners dump Indian debt on oil jolt, missing index inclusion spark - kitco.com

Source: kitco.com

DW NOTE

Foreign investors dumped Indian debt after oil prices spiked — WTI up 22.8% year-over-year — and index inclusion failed to materialise. The first fact is predictable: emerging market debt gets sold when the terms of trade shift against net importers. The second is the story: global index providers have been dangling Indian bond inclusion for years while Delhi drags out capital account reforms. Markets priced in the carrot; they're getting the stick.

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