INDY ETF

India's Manufacturing PMI fell to an 11-month low in November, indicating economic challenges. Despite underperforming global benchmarks, I reiterate a buy rating on the iShares India 50 ETF looking ahead to 2025. INDY's portfolio is concentrated in large-cap growth stocks, with significant exposure to financials and energy, and carries a P/E ratio of 19.5.

The Q2 GDP data has intensified calls for monetary easing. Due to stubborn inflation, a status quo on repo rates in the December may happen, with any easing likely to be deferred until early 2025.

INDY ETF is currently exceeding the average returns it generates in a calendar year, but it is still lagging global stocks. India's growth potential and stable political regime should work well for INDY in the long term, but in the short term, it is likely to face some risks. INDY's top holding - HDFC Bank is finding it challenging to grow its low-cost CASA share and is also seeing earnings contraction.

iShares India 50 ETF INDY is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 29.7% from its 52-week low price of $43.60/share.

India's economy is thriving post-COVID, benefiting from the trade shift away from China and favorable demographics. iShares India 50 ETF provides easy access to top Indian stocks, with a high concentration in the Financials and Tech sectors. The INDY ETF competes with MSCI India ETF, offering broader exposure with less concentration in top holdings, but has underperformed recently.

iShares India 50 ETF INDY is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 23.8% from its 52-week low price of $43.60/share.

INDY: Catalysts In Focus

International stocks have generally underperformed in 2023, but India's Nifty 50 Index has reached all-time highs. The iShares India 50 ETF (INDY) has decent valuation and favorable technicals, making it a potential buy. INDY has high exposure to large-cap growth stocks and carries some sector allocation risks, but the overall chart and trend are constructive.

After a brief pause in Q3, India's flagship Nifty 50 resumed its YTD rally in Q4. The near-term fundamental and technical setup supports more upside from here. Ahead of a major election catalyst in early 2024, the more concentrated INDY portfolio could outperform.