“Taking both growth and inflation dynamics into account, we feel the RBI’s bias is not to hike rates further at the moment,” Barclays analysts Rahul Bajoria and Siddhartha Sanyal said.
For broad India exposure, investors can take a look at EPI, which weights India companies by earnings in their fiscal year prior to the index measurement date; the iShares MSCI India ETF (NYSEArca: INDA), which tracks Indian large- and mid-cap stocks; the PowerShares India Portfolio (NYSEArca: PIN), which tracks 50 of the largest Indian companies.
The industrial sector makes up 9.3% of EPI and consumer discretionary stocks account for 5.7% of the fund. INDA has 4.2% in industrials and 6.4% in consumer discretionary. PIN includes 1.9% in industrials and 4.6% in consumer discretionary. EPI and INDA both have significant exposure to the financial sector at around 24%, whereas PIN’s largest sector allocation is in information technology at 24.4%.
WisdomTree India Earnings ETF
For more information on India, visit our India category.