Franklin Templeton Investments and other foreign funds are piling into Indian bonds after Prime Minister Narendra Modi’s key election victory. That’s pitting them against local naysayers who predict that benchmark securities will post their first loss in four years.
Buoyed by expectations of more economic reforms and an appreciating currency, overseas investors have poured Rs23,720 crore ($3.6 billion) into government and corporate rupee bonds in March, the most since January 2015. Domestic traders and money managers say a glut of new bond sales and the central bank’s shift away from easing will see prices slide by the year-end.
