Related: Fixed Income Outlook in 5 Charts

Furthermore, India is relatively less exposed to changes in U.S. trade policy, which has helped insulate the economy from the trade war spat.

The rally in Indian shares are being driven by strength in the financial sector, the largest sector component of many India-related ETFs, including INDA. New bankruptcy code could help diminish bad loans clogging up Indian banks and constraining lending, according to analysts.

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