Global funds leave Indian bonds in spate as Covid-19 crisis worsens

Global funds used to clamour for more access to India’s debt markets. The high-yielding bonds are now the least popular in Asia as the nation struggles to contain the Covid-19 pandemic.

Overseas funds have sold $14.6 billion of Indian corporate and government bonds this year, the most among emerging-Asian nations, according to the data compiled by Bloomberg. Indonesia has also seen outflows, but almost half that of India, while South Korea and Malaysia have attracted inflows.

“Foreigners were already looking at India with caution, given the worries over higher fiscal deficit,” said Nagaraj Kulkarni, a rates strategist at Standard Chartered