India investors look to whet appetite with equities

Indian bond investors are snapping up securities tied to the nation's equities

Indian bond investors scouring for bigger returns are snapping up securities tied to the nation’s equities.

Faced with bank deposit rates at multi-decade lows and a rally that has sent shares to records, investors may buy Rs 10,000 crore ($1.6 billion) of market-linked debentures in the year to March 2018, the most in at least five years, according to Credit Analysis and Research Ltd.

Sales of equity-linked debt securities have surged in the past year as banks slashed interest rates on deposits after being flooded with funds due to Prime Minister Narendra Modi’s cash clampdown. State Bank of India cut the one-year