Archive · 15 Sep 2025
JPMorgan Considers Index Changes, Potentially Affecting Indian Bonds
JPMorgan is planning to change how it measures bonds from countries that are growing their economies.
They will reduce how much money is invested in bonds from big countries like China and India.
This means investors might sell Indian government bonds, which could make them less valuable.
The Indian rupee, the country's money, could also become weaker.
This change is expected to start in 2026 and is seen by some analysts as possibly linked to trade disputes between the US, India, and China.
JPMorgan is considering reducing the weight of large bond issuers in its emerging market index.
India's weight in the index may be cut from 10% to 9%.
Implementation will be phased in the first half of 2026.
Market analysts suggest it may lead to selling pressure on Indian government bonds.
The Indian rupee may depreciate further due to the change.
- Who
- JPMorgan Chase & Co.
- What
- Is considering reducing the weight of largest bond issuers in its emerging-market index.
- When
- Implementation starts in the first half of 2026.
- Where
- GBI-EM Global Diversified Index
- Why
- Not explicitly stated, but market players suggest it might be related to US tariff tussle with India and China.
- Company
- JPMorgan Chase & Co.
- Index
- GBI-EM Global Diversified
- Change
- Issuer cap reduced to 9% from 10%
- Implementation
- Phased in first half of 2026
- Affected Issuers
- China, India
- Potential Impact
- Selling pressure on Indian G-Secs and rupee depreciation
