4 Things Firing Up India ETFs
June 30th at 12:00pm by Tom Lydon
By all appearances, India’s economy is firing on all cylinders these days. Although recent performance in its exchange traded funds (ETFs) has been mixed, there’s a lot to like about what the economy has been doing lately.
- Indian stocks climbed so much in the second quarter that they beat out the world’s 20 largest markets. The Sensex is currently on its longest winning streak since at least September 1979, according to Bloomberg, Rajhkumar K Shaaw for BusinessWeek reports.
- Unni Krishnan for BusinessWeek reports that the Indian’s accelerating economy boosted imports of goods and machinery, which in turn added to a widening current-account deficit. This could expand further as the global economy recovers. [India ETFs: Bull or Bear?]
- Economic News reports that some experts feel India’s economic recovery is much more organic and more sustainable than that of other economies – particularly China’s. As global stimulus efforts begin to fade, the reality of a recovery will become apparent. [Why the Tiger Roars in India ETFs.]
- Harsh Joshi for The Wall Street Journal reports that India has found a solution to avert a banking crisis: enforce an interest rate below which each bank cannot lend, starting tomorrow. Riskier borrowers pay above this and the banks are not allowed to go below. The goal is ultimately to avoid a repeat of the boom that occurred globally in the housing market. [India ETFs and the Fight for Modernization.]
For more stories about India, visit our India category.
- PowerShares India (NYSEArca: PIN)
- WisdomTree India Earnings (NYSEArca: EPI)
- iShares S&P India Nifty 50 Index (NYSEArca: INDY)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.