News: J P Morgan has announced inclusion of Indian bonds in the global index from June 2024. Addition to the index will be carried in a staggered manner starting from June 2024 with maximum weight expected to reach 10%.
Views: While bond inclusion in the global index is scheduled in FY25E, ceteris paribus, anticipated softening of yields on the back of inflows in Indian bonds are expected to benefit banks either as treasury gains or increase in proportion of advances.
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