India’s central bank recently diminished its cash reserve on banks by 0.5% and cautions that upside risks to inflation remains. The central bank also relaxed foreign investment restrictions, which is helping to attract foreign investors.
Zacks warns that Indian stocks are highly volatile and their performance depends on foreign institutional investors. The firm also cautions that the rupee is vulnerable to major capital inflows as their currency market is less liquid than others.
- Powershares India Portfolio ETF (NYSEArca: PIN): up 24.9% year-to-date. PIN’s largest sectors holdings are energy, information technology and financials.
- iShares S&P India Nifty 50 Index Fund ETF (NYSEArca: INDY): up 28.6% year-to-date. INDY’s top sector weightings are financials, information technology and energy.
- iShares MSCI India Index Fund (NYSEArca: INDA): was launched on Feb. 2, 2012. INDA’s largest sector weightings include financials, information technology and energy.
WisdomTree India Earnings Fund ETF
For more information on India, visit our India category.
Max Chen contributed to this article.