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ERROR: type should be string, got "https://blogs.wsj.com/indiarealtime/2014/12/15/indian-bonds-get-more-than-stocks-this-year/\nIndian Bonds Get More Than Stocks This Year\nShefali Anand\nBiographyShefali Anand\nShefali.Anand@wsj.com\nDec 15, 2014 8:28 am IST\nForeign Bonding |Create infographics\nIndia's stock market is getting more global media attention as it hits new highs, but surprisingly this year it is the bond market which is getting more international money.\nForeign investors have been net buyers of more than $26 billion in rupee-denominated bonds this year. That’s the largest ever inflow into Indian debt. In comparison, foreign investors have only invested around $17 billion into Indian stocks so far this year.\nIt is the first time in more than a decade when the Indian bond market has attracted more money than the stock market in a year when stocks were rising.\nLast month, loss-making, state-run telecom firm Mahanagar Telephone Nigam, sold 10-year bonds worth 37 billion rupees ($617 million) backed by a federal government guarantee, according to research firm Prime Database. The coupon on these bonds ranged from 8.24% to 8.29%, very close to the yield on the benchmark 10-year government bond.\n“We have for the first time opened up for foreign institutional players,” said P.K. Purwar, MTNL’s director of finance. “It has helped us to lower the yields.”\nIndian companies have also sold $18 billion worth of non-rupee bonds, mainly in U.S. dollars this year. That’s 80% more than they did in 2012, according to the India unit of The Royal Bank of Scotland.\nInvestors’ rush into Indian debt stems partly from the expectation that the country’s central bank will soon cut interest rates, given that inflation has eased in recent months.\nInvestors are also eager to buy Indian debt on the hope the new government which came to power in May will help accelerate economic expansion.\nForeign investors had initially piled into government debt, which is considered the safest. Average international investors have already invested the maximum of $25 billion they are allowed to invest in total in government bonds so some are switching to Indian corporate bonds.\nInternational investors owned $23 billion of rupee-denominated company bonds as of Dec 10, more than twice what they owned at the beginning of the year.\nAnalysts and bankers expect the demand for Indian debt to remain strong in 2015, particularly for bonds issued by Indian companies in dollars.\nFitch Ratings expects more Indian companies to sell bonds overseas where they can raise money cheaply.\n“The growth is likely to be driven by the need to refinance debt and fund (capital expenditure) once the investment cycle restarts,” Fitch Ratings said in a recent research note.\nSome foreign investors, however, are turning a bit cautious giving the recent rally in Indian bonds.\nThere hasn’t yet been enough change on ground in India to fix the structural issues plaguing the country, said Brigitte Posch, head of emerging-market corporate debt at Babson Capital which manages $2 billion in emerging market debt.\nIndian debt has “priced in all the good news which in our view still has not happened,” she said.\nFor breaking news, features and analysis from India, click here and follow WSJ India on Facebook.\nThe WSJ is now on LINE. Scan to follow or click \"Add Friends\" from your mobile device to add our official account.\nPrevious A Sell Recommendation Put This Analyst in Jail Next Latest on Mehdi Masroor Biswas and the Pro-Islamic State Twitter Account"