Last year, Indian equities and the aforementioned ETFs were buoyed by the landslide victory for Hindu nationalist Narendra Modi in the country’s national elections. In 2015, other factors are supporting India ETFs, including low oil prices (India is a net importer of crude) and accomodative monetary policy from the Reserve Bank of India.
“Experts believe that strengthening of India’s ‘relative’ position merit for an increase in overweight position in the portfolio of global fund managers. They point out that the exposure of global fund managers may surpass or reach the weight Indian equities enjoyed in their portfolios in the beginning of this year,” reports the Economic Times.
WisdomTree India Earnings ETF