Foreigners turn sellers of Indian sovereign bonds on index disappointment

Global funds sold 24.4 billion rupees ($295 million) of index-eligible Indian sovereign bonds in October after JPMorgan Chase & Co. refrained from including the debt in its gauge. 
 

The outflow from the so-called Fully Accessible Route, or FAR, securities marked the first such withdrawal in seven months. JPMorgan decided last month to keep rupee government notes off its emerging-market sovereign bond index, citing investment hurdles including a lengthy investor registration process.

The selling risks fueling further losses in Indian government securities after they rounded off a second month of declines amid a rout in global debt markets. Expectations for more