Last week, Nomura said the sectors that stand to be big winners under a new Indian government are financial services, infrastructure and energy, Forbes reported. Those sectors combine for 36% of INDY’s weight.
Part of the reason India ETFs have rallied this year is the rupee rebound, but that is not good news for all sectors. A change in leadership in India is seen as a rupee positive event. A stronger currency could crimp shares of Indian information technology firms, which derive significant percentages of revenue of profits from foreign markets. Computer and software firms account for almost 15% of INDY’s weight. [Rupee ETFs Bounce Back]
iShares India 50 ETF
ETF Trends editorial team contributed to this post.