While the technical outlook India ETFs may appear murky, that is the result of fragile fundamentals. India’s economy, Asia’s third-largest, slumped over the past year, expanding 5% in 2013, the slowest rate since 2003, compared to average growth of 8.5% from 2009 to 2011.
Inflation is still an issue. India’s consumer price index ended 2013 at 9.9% year-over-year, down from 11.2% in November. Due to the lower inflation level in December, the central bank could leave rates unchanged in the near-term. [Inflation Constrains India ETFs]
PIN features an almost 24.6% weight to the technology sector, a possible advantage as Indian tech stocks have shown some durability in the face of the declining rupee. However, a combined 34.7% weight to energy and materials names could be something for investors to keep an eye with PIN due to India’s status as an importer of the bulk of its energy needs.
PowerShares India Portfolio