“Consensus estimates for corporate earnings in EM are improving over the next two years. Estimates for India are better still,” notes EGShares. “Current forward valuation levels point to sustainable growth at a reasonable price over the long term.”
Falling oil prices are seen as a boon for Indian consumers as highlighted INCO’s nearly perfect inverse price reaction to the United States Oil Fund (NYSEArca: USO) over the past year. USO is down more than 55% over that period.
India is enjoying the effects of lower energy prices as India, the fourth largest consumer of oil, is a heavy importer. Even with the government reducing its oil subsidies, every dollar drop in oil translated to $1 billion saved in subsidy payments. [The Refined Approach to EM Consumer ETFs]
EGShares India Consumer ETF