Mar 7 2014, 8:48am CST | by Forbes
The Wisdom Tree India Earnings (EPI) exchange traded fund is even beating the S&P 500, which often seems like the only plus-territory stock market in the world. EPI is up over 2% year to date with the S&P 500 is up 1.8%.
In Mumbai, the Sensex index hit an all-time intraday high of 21,960.89 on Friday and then went on to make record high close of 21,919.79, a gain of 405 points. The broader 50-share Nifty index settled at 6,525.60, up 124.45 points for a 1.94% gain.
Foreign institutional investors have sent $1 billion in portfolio flows into India over the last 15 trading sessions, according to the National Stock Exchange.
Although the economy is not producing what many India watchers think it should, growing under 5% again in the third quarter, investors have grown to like India ever since Raghuram Rajan took over the Reserve Bank of India. Sharp measures to curb the current account deficit, elections, and a resilient rupee make India the best of the big four emerging markets right now. The rupee is up 1.29% against the dollar.
However on Friday, Barclays Capital warned that flows into emerging markets appear “ripe for a correction.” While Barclays did not mention India, and much of its focus was on fixed income data, any correction in emerging market risk appetite could keep Sensex away from the 22,000 market many local investors in India are now forecasting.
Year-to-date outperformers in Mumbai. Stocks listed on the Sensex and gains are in rupees.
Tata Consultancy Services: +3.31%
Mahindra & Mahindra: +3.48%
Future Retail: +3.91%
Bharat Heavy Electricals: +6%
HDFC Bank Limited: +6.96%
Dr. Reddy’s Laboratories: +7.5%
Tata Motors: +9.1%
ICICI Bank Limited: +9.28%
Shree Cement: +17.62%
Adani Ports: +18.8%/>/>/>/>/>/>/>/>/>
Source: Forbes Business
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