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India ETFs Show Resilience in Face of Covid-19 Resurgence


India ETFs Show Resilience in Face of Covid-19 Resurgence
May 28, 2021
India exchange traded funds have been rallying as investors look past the short-term Covid-19 crisis and consider long-term growth potential.
Over the past month, the
The MSCI India index has gained 10.6% so far this year, outperforming the broader emerging markets gauge, which is up 4.9%, the Wall Street Journal reports.
“There is a huge cognitive dissonance between what markets are doing and what the far-more-dire reality is on the ground,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, told the WSJ, adding that India’s stock indices reflected the performance of very large, well-connected, and usually financially strong companies. ....

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BlackRock joins funds betting on rebound of Indian assets amid pandemic


Even as India is attracting all the global attention for the worst virus outbreak, the pandemic has done little to dent the confidence of overseas investors who are betting on a strong rebound.
BlackRock Inc. plans to use any weakness in the rupee to add to a modest long position while GW&K Investment Management LLC is boosting its stock holdings following a recent selloff. Invesco Hong Kong Ltd. and Lombard Odier favor debt linked to India’s sustainable investing and renewable energy sectors.
Portfolio managers are attempting to navigate India’s pandemic by focusing on the nation’s long-term growth prospects, with consumption expected to drive a recovery once the virus crisis passes. While the outbreak has fueled the world’s worst health crisis, limited stock outflows and a rebound in the currency attest to investors’ confidence in the South Asian economy. ....

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