India’s economy and the exchange traded note (ETN) that follows it continue to heat up, causing the central bank to crank up interest rates. The Indian currency, the rupee, has jumped in value versus the U.S. dollar and annualized growth in the country for the first quarter was at 11.4%. Carl Delfeld of ETFXRAY.com reports India’s economy does not appear to be slowing down. This is seen in the increase of housing prices, credit growth, wage increases for skilled workers, record industrial capital utilization rates, and more imports. The rise in consumer prices means more rate hikes may be ahead. The higher rupee has helped boost returns for investors, the iPath MSCI India (INP) is up 12% year-to-date. If investing in India is for your portfolio, make sure you set your exit points.
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.