Around India, exchange traded funds (ETFs) could be feeling the impact of falling prices and a rash of political instability.
India’s inflation rate fell below 11% for the first time since May, giving the central bank room to reduce interest rates, report Subramaniam Sharma and Cherian Thomas for Bloomberg.
The bigger-than-expected drop could spur the bank to focus on supporting economic growth instead of controlling inflation amid the threat of a global recession.
Wholesale prices rose 10.7% in the week ending Oct. 18 from a year ago. It’s slightly slower than the 10.8% increase economists had expected. India’s central bank last week reduced its economic-growth forecast to as low as 7.5% from 8% in the year to March 31.
In the Indian state of Assam, more than 60 people were killed and 300 injured during a series of 12 bombings, because of fighting between indigenous groups and immigrants from nearby Bangladesh.
No group has claimed responsibility, and police are investigating if the attacks were carried out jointly by a rebel organization and Islamist militants, reports Bibhudatta Pradhan for Bloomberg.
Long-standing wars over the land between members of the Bodo tribe and Muslim settlers from Bangladesh have also spread out to other regions. The political instability in a time of economic upheaval could be an impediment to future growth.
- PowerShares India (PIN), down 55% since March 5 inception
- WisdomTree India Earnings (EPI), down 59.3% since Feb. 26 inception
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