Oct 8 (Askume) – Global index provider FTSE Russell said on Tuesday it will join JPMorgan Chase & Co (JPM.N) and Bloomberg Index Services .
The London-based index provider also added South Korean government bonds to the FTSE World Government Bond Index (WGBI), after the bond had been on the index’s watch list for two years.
South Korean government bonds will account for 2.22% of the index on a market value-weighted basis and will be included in the WGBI of the FTSE index starting in November 2025, FTSE said in a statement.
Indian securities will become part of the FTSE EMBBI after being on the FTSE index provider’s watchlist for the last three years. Its share in the index will be 9.35% on a market capitalisation-weighted basis, FTSE said.
According to data released by FTSE, the market capitalization of EMBI is US$4.7 trillion.
“This decision is a positive sentiment and will structurally strengthen the demand side for Indian bonds,” said Madhavi Arora, chief economist at Emkay Global Financial Services.
Since the announcement of its inclusion in the J.P. Morgan Emerging Markets Index in September 2023, Indian government bonds have attracted foreign capital inflows of about $18.5 billion.
During a review in March, the FTSE delayed the inclusion of Indian bonds in its index due to tax, registration and settlement issues, but acknowledged progress in access to securities.
The FTSE’s announcement follows the inclusion of Indian government securities in the J.P. Morgan Emerging Markets Government Bond Index from June 2024 and Bloomberg Index Services’ Emerging Markets Local Currency Index from January 2025 .
