ICICI Direct predicts a strong comeback for the Indian debt market in 2024, driven by favorable global growth-inflation dynamics. Long-duration debt funds are poised for double-digit returns. Major economies like the U.S. and China are expected to experience a sharp slowdown, contributing to a global rate-cut cycle. India’s inclusion in the JP Morgan GBI EM Index, starting June 2024, could lead to significant foreign inflows. As central banks shift towards rate cuts, the report anticipates a 75bps rate cut by India’s RBI, potentially lowering 10-year yields to around 6.25%. Investors are advised to consider long-term government bonds for rewarding opportunities.
Indian Debt Market Awaits Resurgence in 2024 Amid Global Economic Slowdown
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