ETFs
Indian ETFs: can the rally continue?
Indian stocks had a wild ride last week as election results suggested Prime Minister Modi’s BJP party may not get the seats needed for a simple majority. However, they rebounded when it became clear that his coalition would be able to form the government.
On Sunday, Modi was sworn in as Indian Prime Minister for a third consecutive term. Although some worry that it may sometimes be difficult for Modi to advance his agenda, investors like having a business-friendly government in power.
The government has retained key ministers in the important portfolios of finance, interior, defense and external affairs, suggesting political continuity and that Modi remains firmly in charge of the new coalition government.
Indian stocks and ETFs have attracted considerable interest from investors recently, as the country emerges as a clear beneficiary of China’s economic crisis. Geopolitical tensions between China and the United States and its Western allies have also encouraged large multinationals to explore alternatives to China.
Many American companies are seeking to reduce their dependence on China. India has a large and highly skilled workforce, and the government is keen to attract more foreign investment.
Apple AAPL and Nvidia NVDA are among the prominent companies expanding their presence in India.
India remains the fastest growing major economy in the world. Its GDP grew by 8.2% in the fiscal year ending in March. Goldman Sachs predicts that India will become the world’s second largest economy by 2075.
Economic growth is mainly based on domestic consumption and investments. The rising middle class and its growing incomes will continue to drive the economy.
Last year, India overtook China as the world’s most populous country, and its population is much younger than that of China and most Western countries.
The country has undergone an impressive digital transformation in recent years, thanks to a combination of factors including growing internet penetration, the availability of ultra-low-cost smartphones and data plans, technological advancements and the emphasis placed by the government on building digital infrastructure.
To learn more about iShares MSCI India ETF INDA, WisdomTree India Earnings Fund EPI and iShares MSCI India Small-Cap ETF SMIN, please watch the short video above.
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Apple Inc. (AAPL): Free Stock Analysis Report
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
WisdomTree India Earnings ETF (EPI): ETF Research Reports
iShares MSCI India ETF (INDA): ETF Research Reports
iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports