Positive emerging-market debt flows will also buoy equities by boosting optimism about potential returns, according to Global X Management Co.

“Debt markets certainly do lead the equity markets”, and if there are flows into EM debt, this will also be supportive of currencies, Malcolm Dorson, the head of emerging-market strategy, said on Bloomberg TV. This should see international allocators in the US and Europe become more optimistic from an equity perspective too, he added.

Emerging-market borrowers sold $20 billion in dollar notes in the week ending Nov. 6, the largest weekly sale since February, on signs that US rates may have finally peaked, after Federal Reserve Chairman Jerome Powell hinted at the November policy meeting that the rate-hiking cycle may be over.

India is the best structural opportunity within EM, if not the world, as the economy is buoyed by a large population, educated workforce and a very supportive government that has signaled market-friendly economic policies, Global X’s Dorson said.