With 2023 in the books, India stocks capped another strong annual run. That extended the country’s winning streak to eight years, while Chinese stocks slumped for a third consecutive year.
Eight-year winning streaks are something to behold and don’t come around very often. And the long-running success of India equities could imply the asset class is due for a correction. However, the prevailing wisdom is that such a scenario isn’t likely to arrive next year. That indicates assets such as the VanEck India Growth Leaders ETF (GLIN) could be in for more upside.
GLIN tracks the MarketGrader India All-Cap Growth Leaders Index. It focuses on attractively valued growth stocks, delivered for investors in 2023. The und surged 34.81%, while the widely observed MSCI India Index returned “just” 16.94%.
Optimism Abounds for India ETF GLIN in 2024
Past performance isn’t a promise of future returns. But if fund managers recently surveyed by Bloomberg News are accurate in their assessment of India stocks for 2024, GLIN could be poised for another impressive showing.
“That’s the key takeaway from an informal Bloomberg News survey of 10 fund managers and strategists, seven of whom said the NSE Nifty 50 Index will rise in 2024. Of them, two predicted a gain in excess of 10%. Two other respondents forecast a drop. The benchmark has risen 20% this year, setting new records along the way and beating MSCI’s Asia Pacific and emerging markets indexes,” according to the news outlet.
Assuming the prediction of a 10%-plus gain for the NSE Nifty 50 Index proves accurate, that could be meaningful for GLIN investors. That’s because the ETF has a knack for outperforming basic India equity benchmarks when those gauges trend higher.
Entering 2024, the combined market capitalization of India-listed stocks is $4 trillion. That’s the first time on record that feat has been achieved. Perhaps adding to the allure of GLIN as a potential 2024 winner among single-country ETFs are factors including expectations that more global and local investors will continue embracing India stocks.
“Survey respondents pointed to inflows from overseas investors, who have bought over $20 billion worth of local stocks on a net basis so far this year, reversing a record withdrawal in 2022. A victory for Prime Minister Narendra Modi in upcoming general elections, which would help confirm political stability, is seen as crucial for global funds to keep investing in India,” concluded Bloomberg.
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