India ETFs: BRIC’s Shining Stars

Other noted technicians have recently highlighted strength in EPI.

“From a shorter-term view India ETF (EPI) is reflecting some relative strength compared to EEM year to date, which has now brought it up against a year-long resistance line above,” said Chris Kimble of Kimble Charting Solutions last week.

Although India ETFs have impressed relative to other major BRIC ETFs (EPI and INDY are both up more than 6% in the past month), some U.S. investors appear apprehensive that these ETFs can keep climbing, a notion highlighted by outflows from India funds.

However, what investors should pay attention to as it pertains to India is institutional buying. Pensions plans, endowments and sovereign wealth funds are buying Indian stocks and those are investors with long-term views, indicating they see current value and future upside in Indian equities. [Some Investors Return to India]