Goldman Sachs Group picks 6 Indian bonds likely to gain from index inclusion

Analysts led by Danny Suwanapruti say they are upbeat on Indian government bonds and in response to client queries decided to analyze how funds benchmarked to JPMorgan’s GBI-EM Global Diversified Index might construct portfolios.

India’s debt market is on course for a watershed moment in June when it joins the Wall Street bank’s benchmarks, a step expected to attract up to $40 billion of new money because foreigners currently hold just a fraction of the bonds. The inflows have helped make them the second-best performers in local currency emerging market government debt in 2024.

“We identify the most likely sought-after securities,” they wrote. “The objective here is to select a group of bonds that have the largest outstanding size (as they are likely to be the most liquid) and have securities representing different parts of the curve.”

Of the 35 bonds accessible to non-residents and set to be included in the index, Goldman cited the following: