Russ Koesterich and Nelli Oster, strategists at iShares, comment that developing markets are attracting more investors due to strong earnings growth, relative cheapness as compared to emerging markets, inflationary pressures in large emerging markets and a risk averse market atmosphere.
However, iShares believes that investors will begin to stay away from basket emerging market ETFs and start picking out country-specific investment strategies for the immediate short-term as a result of diverging performances between emerging countries and regions.
In India, Reserve Bank of India Governor Duvvuri Subbarao stated that the recent rate hike of 50 basis points will help sustain high growth in the medium term, reports Manojit Saha for Rediff. Subbarao also said that while March inflation numbers was an attributing factor, inflationary pressures was not the only reason for the rate hike.
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Max Chen contributed to this article.