Indian government bonds closed the session with little change, capping a sixth consecutive week of price gains.
The benchmark 6.94% 2036 bond yield settled at 6.7108%, reflecting persistent demand from overseas capital.
DBS Bank noted that traders are front-running the potential index addition, which would mandate passive fund purchases and likely sustain buying pressure.
This marks the longest uninterrupted run of appreciation for Indian sovereign debt in recent months, underscoring a shift in sentiment toward emerging-market fixed income.
The rally is being driven by strong foreign inflows, with investors positioning ahead of expectations for India’s inclusion in major global bond indices.
DBS Bank noted that traders are front-running the potential index addition, which would mandate passive fund purchases and likely sustain buying pressure.
The move has helped cushion the Indian market against broader emerging-market volatility, as foreign capital seeks yield in a relatively stable macro environment.