India’s government bonds may be added to JPMorgan’s GBI-EM Global Diversified Bond Index next year, according to a Bloomberg report. The report, quoting Goldman Sachs Group, said India, which is a large, deep and high-yielding market, would help to diversify as well as boost the average yield of the overall index.
The country’s sovereign bonds could be added to the global index with an initial weightage of 10 per cent, said the Bloomberg report quoting a note authored by analysts Danny Suwanapruti and Santanu Sengupta. It added that India’s $1-trillion sovereign bond market is one of the biggest among emerging markets that is not part of any global index.
“Adding India, which is a large, deep and high-yielding market, would help to diversify as well as boost the average yield of the overall index… Such a move would be beneficial to various stakeholders, including EM investors and the Indian government,” the report said quoting the analysts.
India’s government securities (g-sec) on Wednesday stood at 7.1870, which is lower by 0.10 per cent as compared with a day ago.
The bond yield on January 1 had stood at 6.458 per cent and rose to hit 6.888 per cent by February 3. It then declined till February 18 when it touched 6.666 per cent. February-end also saw the start of the Russia-Ukraine war. Since then, the yield started witnessing a continuous upward trend till June 16 when it touch a high of 7.618 per cent. However, now, the yield on 10-year G-Secs has been seeing a downward trend since June 16.
Indian equity markets on Wednesday opened in the green amid mixed global cues and softening crude oil prices. In early trade, S&P BSE Sensex climbed over 300 points to reclaim 60,000 levels for the first time since April 5. Strength in oil & gas, auto, and FMCG shares powered the up move in the market though weakness in select IT names played spoilsport. Meanwhile, Nifty50 rose over 50 points to trade above 17,900 levels.
Jaideep Hansraj, MD & CEO Kotak securities, said, “Today’s rescaling of the 60,000 peaks is a sign of the strength of retail investors in India. It shows the belief of the investors in the India growth story and is another reminder to all of us to be optimistic about India inc.”
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “Sensex hits 60k level after 4 month period led by consumption related stocks & sectors. From the macro factors, crude oil prices helped our markets to revive from lower levels. At one point Sensex was about to break the psychological level of 50k but the confidence in the domestic economy from the retail investors, domestic institutions and fund manager managers helped the markets to stay above it. The market is not far from crossing the levels all time highest levels.”
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