StanChart WM's Narayan on India Bonds

The video discusses the potential inclusion of Indian bonds in major indices, highlighting tax policy issues and settlement challenges. It explores investor optimism due to changes like the fully accessible route and India's economic resilience against a strong USD. The impact of bond index inclusion on foreign investment is analyzed, with expectations of significant inflows. The video concludes with a discussion on RBI's rate hike expectations, considering global pressures and domestic inflation concerns.

What has been a major point of contention between Indian officials and index providers since 2016?

• Trade tariffs

• Interest rate policies

• Currency exchange rates

• Withholding and capital tax issues

What significant change in 2020 increased optimism among investors regarding Indian bonds?

• Increase in foreign exchange reserves

• Introduction of a new currency

• Reduction in interest rates

• Implementation of the fully accessible route

How has the value of bonds eligible under the fully accessible route changed over the last two years?

• Fluctuated unpredictably

• Increased substantially

• Remained stable

• Decreased significantly

What is expected to help reduce India's current account deficit in 2023?

• Rise in export tariffs

• Decrease in domestic consumption

• Decline in oil prices

• Increase in foreign investments

What is the expected impact of bond index inclusions on foreign investor inflows?

• Complete withdrawal of investments

• Decrease in inflows

• No significant impact

• Increase in inflows

Which major bond index providers are mentioned as potentially including INR bonds?

• S&P, Moody's, Fitch

• NASDAQ, NYSE, LSE

• JP Morgan, Bloomberg, Footsie

• Goldman Sachs, Morgan Stanley, HSBC

What is the expected peak rate for the RBI's rate hiking cycle?

• 6.0%

• 5.5%

• 6.5%

• 7.0%