India ETFs Sink As Investors Go Elsewhere
February 25th, 2011 at 12:00pm by Tom Lydon
Vikas Bajaj for The New York Times reports that foreign direct investment in India fell more than 31%, to $24 billion, in 2010 even as emerging markets as an asset class remained attractive. [India ETFs and the Emerging Market Rebound.]
Also of mention, foreign investors took $1.4 billion out of the Indian stock market, driving the country’s Nifty 50 index down 17% from a record high set in November. Behind the outflows are rising inflation, which is currently at 8.2%, and an inefficient bureaucracy are other obstacles that the economy must overcome. [Why India ETFs Are In a Rut.]
Jahangir Aziz for The Wall Street Journal reports that India isn’t taking the outflows lying down. New Delhi’s state budget meeting will take place on Mnday, and the latest threats to growth for the country will dominate the conversations.
PowerShares India (NYSEArca: PIN) and WisdomTree India Earnings (NYSEArca: EPI) have been on a general downtrend for several months. The only India ETF doing well these days, naturally, is the Direxion Daily India Bear 2x Shares (NYSEArca: INDZ), which is up 15% in the last month.
Tisha Guerrero contributed to this article.
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