“The underperformance of Indian metal stocks with respect to their global peers in local currency is also quite apparent. In common currency terms, the underperformance is even starker, especially given that most of the Indian metal companies are running globally competitive businesses,” the bank said, according to Barron’s.
Materials may not dominate India ETFs, but when combined with other sectors that have been framed as weak rupee winners, namely technology and health care, India ETFs could offer some rebound potential down the road. For example, those three sectors combine for 31% of EPI’s weight.
WisdomTree India Earnings ETF
ETF Trends editorial team contributed to this post.