India ETFs in Bull Market Territory | ETF Trends

India’s stock market is in a bull market rally, rising around 20% off the December lows on major indices.

“In the last decade, India’s annual economic growth averaged close to 9% a year, thanks to economic liberalization, which included the opening up of foreign investment and trade, privatization, improved industry regulations, and capital market reforms. Even during the 2008 global financial crisis, India was able to continue growing at around 6%,” Patricia Oey wrote in a Morningstar fund analysis.

Major, long-only ETFs such as the iShares S&P Nifty Fifty Index Fund (NYSEArca: INDY) made gains this past week up to 5%. Indian markets are on the rise due to reports on lower inflation and the possibility of interest rate cuts in the near future.

The Indian stock market is now in bull market territory based on a 20% rise from lows hit in December on major indices such as the Sensex, reports Christian Magoon for Seeking Alpha. According to a recent report from Bespoke Investments, a bull market in India is based on the Sensex and two other variables – the average gain and length of previous bull runs. The Sensex has been in bear market territory since November 5, 2010. [India ETFs and the Emerging Market Rebound]

Since 1986, the average bull market in India gained 111%. The average duration of a bull market was 394 days, indicating healthy gains ahead if history repeats itself.