China is looking to improve its economic situation. But emerging markets (EM) have been flocking to other parts around the globe for opportunities. One of them is India. Bullish traders in the country’s equities will be appeased given the country’s latest growth forecast.
Per a Reuters report, India’s finance minister is expecting that the country’s gross domestic product (GDP) is set to grow by 8% in the first quarter. This would indicate a year-over-year increase comparable to 2023 as the macroeconomic condition improves. By year’s end, hopefully this growth is sustainable. That would add more reasons to give prospective investors an opportunity to give India and India-focused ETFs a closer look.
“Hopefully the fourth quarter … will also have (growth) of 8% or above 8% resulting in 2023/24 having an average growth in GDP of 8% or over 8%,” said Finance Minister Nirmala Sitharaman.
That 8% growth figure is higher than other forecasts, namely the International Monetary Fund’s estimations. Those estimates predicted, according to a CNN article, that growth would be 6.7% for the fiscal year through the end of March. Nonetheless, the optimism is warranted given the country’s ambitious business expansion plans.
One of the ways India is expanding its growth is by opening its doors for capital investment. Additionally, leadership has been pitching the country as an ideal destination for global firms to set up shop in terms of manufacturing plants. For the United States, this offers an alternative as relations with China sour.
“India is also widely seen as an alternative to China for countries and companies looking to diversify their supply chains, particularly as the relationship between Washington and Beijing sours,” the CNN article added.
Doubling Leverage on India
As India’s growth trajectory remains white hot, it could be an opportune time for traders to get exposure via the Direxion Daily MSCI India Bull 2x ETF (INDL ). The fund seeks daily investment results equal to 200% of the performance of the MSCI India Index. That index measures the performance of the large- and midcap segments of India’s equity market. It covers approximately 85% of companies in India’s equity universe.
Having that diversification aspect of INDL can help capture that growth. That’s because large-cap companies continue to fuel gains in the current economic environment. Once large-caps peak, midcap companies can continue assuming that growth trajectory, oftentimes to a greater degree in terms of gains.
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