ETF Trends
ETF Trends

India exchange traded funds have surged over the past month, with India’s benchmark indices hitting new record highs, on hopes that elections next month will bring a more business friendly party to power.

Over the past month, the WisdomTree India Earnings Fund (NYSEArca: EPI) has gained 8.6% over the past month, iShares MSCI India ETF (NYSEArca: INDA) increased 8.0% and PowerShares India Portfolio (NYSEArca: PIN) rose 4.6%. [Big India ETF Flirts With a Breakout]

The benchmark BSE Index touched an all-time high of 22,040.72 Tuesday and the broader NSE Index reached a record 6,574.95 as strong buying from foreign investors bolstered blue chip stocks, Reuters reports.

Investors have been pouring back into India’s equity market on hopes that the opposition Bharatiya Janata Party, which is seen as more business friendly, would win elections that start next month.

“Broadly it’s all building up for elections, with (foreign) institutions continuously buying and creating positions,” Hansal Thacker, a director at Lalkar Securities, said in the article. “As the election nears, you will see more volatility in the markets. Profit-taking is expected at this level, but the undercurrent is firm.”

Moreover, India’s stocks are strengthening on a slight increase in industrial output and a dip in inflation.

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