Five Reasons To Invest In India

Vikrant

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Very good.

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A surprising rate cut this week helped lift the Wisdom Tree India (EPI) exchange traded fund by 0.6% over the last five days, beating out the MSCI Emerging Markets and S&P 500 indices.

“Reformers will be the performers,” says Gaurav Mallik, managing director of emerging markets for State Street Global Advisors, a $2.4 trillion wealth management firm in Boston. “This is why all eyes are on India right now. Today, value in emerging markets is locked up in resources, energy and materials. But the only way to unlock that value is you need to reform the business. India is doing that,” he says.

Emerging Global Advisors, a New York-based ETF company, agrees. They touted reforms as the No. 1 for buying Indian equities. In this case, reforms means tax changes and rules changes that allow for greater absorption of foreign money into Indian companies.

On balance, Saturday’s 2015-16 fiscal budget pleased investors despite a marginal sell-off of 0.5% in the stock market. Indian equities are not overbought yet. The relative strength indicator is still in the 50s. An RSI of 70 is a sell signal for technical traders.

Five Reasons To Invest In India - Forbes
 

william the wie

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If Modi can perform the mechanics of getting his agenda enacted as opposed to just getting it passed I will certainly look into EPI but getting rid of regulatory drag and corruption is a long run project.
 
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Vikrant

Vikrant

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This is a very interesting article except for few things like caste and stuff. This is the shortest article I have ever seen on India. It is designed for someone who is considering investing in India and who does not know much about India. It has some accurate information from economics point of view.

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Finally, India and China are not even close when it comes to “transparency” and reliability of contractual arrangements. China is a communist-controlled society without free elections. It is a country that is ruled by men and the desires of the communist party. If an investor places capital into China, there is a chance that capital eventually may be confiscated, because contracts, by themselves, mean little. On the other hand, India is a country ruled by laws, which are based on British Common Law, a structure that honors contracts and property rights.
The Base Investment Case -- India vs. China - Forbes
 

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