India ETFs Look Expensive | Page 2 of 2 | ETF Trends

Specifically, 56% of India’s Nifty 50 Index revenue are generated from overseas operations, so the large, multi-nationals will experience currency risk. INDY includes a 76.8% weight toward mega-caps, PIN allocates 71.5% in mega-caps and INDA has 71.0% in mega-caps.

Additionally, energy names like Cairn, metals companies like Tata Steel and Sesa Sterlite, along with banks exposed to these sectors are also at risk, the analysts added.

However, the Credit Suisse analysts argue that consumption, telecom and some other domestic companies could benefit ahead.

Looking at sector weights, INDY focuses on banks 21.8%, flowed by software stocks 14.5%, cigarette companies 7.2%, refineries 6.6% and housing finance 6.0%. INDA holds information tech 22.0%, financials 18.6%, energy 12.0%, consumer staples 11.3% and health care 9.2%. PIN’s top sectors include energy 23.3%, info. tech 20.7%, financials 10.7%, materials 10.2% and consumer staples 9.3%.

For more information on India, visit our India category.

Max Chen contributed to this article.