INDA ETF

INDA: A Compelling Value After A Big Pullback, Technical Support In Play

Steve Weiss, founder and managing partner at Short Hills Capital Partners, joins CNBC's 'Halftime Report' to explain why he's bearish on India.

The INDA ETF, tracking the MSCI India Index, has a 0.65% yearly expense ratio and contains 152 stocks, heavily weighted in Financials (25.32%). Valuation is surprisingly high with an average P/E ratio of 28, even higher than the U.S., indicating potential overvaluation. Historical performance lags behind the S&P 500, especially over a 10-year horizon, but has improved in recent years.

Foreign inflows have picked up post election. Index-related catalysts could drive even more inflows from here. Large-cap focused INDA is well-placed to capture the upside.

India's election season may be over, but equities are not short of tailwinds. The overall macro/micro setup also remains as compelling as ever. Even at a slightly higher valuation, it's difficult to look past iShares MSCI India ETF.

Shares of a popular exchange-traded fund that buys stocks in India sank Tuesday, after Prime Minister Narendra Modi's claimed an election victory with surprisingly less support than expected.

Shares of an exchange-traded fund focused on stocks in India were climbing sharply Monday as investors await results from the country's general election, amid expectations that Prime Minister Narendra Modi will remain in power.

India has achieved several significant goals under PM Modi's leadership in his last two terms. With the possibility of a third term on the horizon, it is expected that equity performance will remain strong over the next five years. Overall, INDA remains a standout choice among India ETFs.

Societe Generale stated that investors are likely to welcome a Narendra Modi victory in the upcoming Indian elections, as they are seeking to continue benefiting from the prime minister's policies that promote economic growth.