Exchange traded funds that invest in India joined the global stock rally Tuesday on signs global leaders are taking steps to address Europe’s debt crisis.
The iShares S&P India Nifty 50 Index Fund (NYSEArca: INDY) gained 0.5% Monday and opened higher Tuesday.
“On Monday Nifty futures tested a panic low of 4756, but recovered towards the end of the day and closed at 4840, at a premium over the spot Nifty, indirectly showing emergence of a lower level support ahead of September F&O expiry,”Alex Mathews, Research Head at BNP Paribas, on Economic Times. [ETF Chart of the Day: India]
Positive global market sentiment has been a result of the renewed hope that Eurozone leaders are closer to reaching a bailout approval. [India ETFs Fall After Latest Rate Hike]
Inflation in India does remain at a higher rate than the Bank of India prefers. The Reserve Bank of India has raised interest rates in an effort to quell inflation. Inflation is at 9.78% for August, reports Drew Neson and Kartik Goyal for Bloomberg, with higher food and fuel prices working against efforts.