Indian markets will likely be among the top three in Asia to attract foreign inflows once tariff-related uncertainties ease, with the rupee and local currency-denominated bonds benefiting the most.
“India within Asia should be one of the best markets for investments as they have a lot of drivers for growth which other markets do not have,” David Hauner, head of global emerging markets fixed income strategy at BofA Securities, said on Tuesday.
Taiwan and South Korea could also invite investor interest, he said. The rupee was at 85.59 on Tuesday and is nearly flat for the year after easing 2.9% in 2024. Hauner expects the unit to appreciate to 84 against the U.S. dollar by end-2025.
