Foreigners Flocking to Indian Bonds Make a Splash Across Markets

Cash pouring into India from its watershed inclusion into key global bond indexes is already reshaping markets in a country long keen to insulate itself from hot money flows.

Foreign investors have pumped roughly 780 billion rupees ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.’s landmark announcement in September and are beginning to climb up the ownership list. Corporate bonds are outperforming peers, foreign exchange reserves hit a record high and the rupee has shrugged off the impact of a broad strengthening in the dollar.