It’s No China, And That’s The Allure

It’s No China, And That’s The Allure
Daniel Johnston

3 months ago1 min

In the past, investors looking for an alternative to US stocks might’ve turned to China – the world’s second-biggest economy – and its stock market, but given the issues the country’s having right now, they’ve been turning their attention to another emerging market: India. It’s certainly got a lot going for it right now: its companies’ earnings performances are proving strong and its economic growth is marching ahead, helped by a supportive, more stable pro-growth government. Plus, a lot of global corporations are moving their supply chains into the country (and out of China).

With all that going on, it’s no wonder investors seem so sold on the country’s prospects: for six straight months, traders have piled into India’s stock market, its longest streak since 2021. So far this year, global investors have bought $17 billion more in Indian shares than they’ve sold, more than making up for their pullback in 2022.

This is good news for the country’s stocks and bodes well for key indexes like the NSE Nifty 50 Index, which is headed for its eighth consecutive year of growth. And with investors broadly feeling bullish about India and its long-term growth story, it could be worth allocating a portion of your portfolio to the country’s shares too. To do that, you could consider investing in the iShares MSCI India ETF (ticker: INDA; expense ratio: 0.64%), which gives exposure to over 100 big and mid-sized companies across the country, or the iShares India 50 ETF (INDY; 0.89%), which tracks India’s 50 biggest firms.



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