“India’s economic package, though a delayed one, was a recognition of the critical state of the economy because of the pandemic,” said Ajay Marwaha, head of investment advisory for Sun Global Investments in London. “This has brought relief to global investors and helped boost Indian asset prices, including easing of domestic firms’ default swaps.”
With the Centre gradually opening up the country following an almost three-month lockdown
to check the virus, the Indian economy
may start expanding by the end of March 2021, DBS Group Holdings said in a report on July 7. Goldman Sachs Group said in a report earlier this month that investors shouldn’t adopt “a broad negative stance on India credit based on economic fundamentals”.
The bank added longer-dated bonds of Indian issuers to its preferred sectors among Asian investment-grade debt, but said it saw little value in junk notes from the borrowers.