India-related stocks, ETFs rally on Wall Street on election optimism

  • Reuters
  • |
  • Updated: May 13, 2014 01:51 IST

Wall Street investors are snapping up US-listed shares of Indian companies and India-related exchange-traded funds on Monday as exit polls predict the opposition Bharatiya Janata Party - seen as more business friendly - would win the general elections.

In ETFs, the Wisdom Tree India Earnings Fund is at its highest since March 2012. The fund, which is heavily overweight financials at 27% of its holdings, is beating the MSCI India Net Return USD Index over the past six months by around 10 percentage points, surging more than 22%.

That also beats the S&P 500 by a wide margin too, with the US benchmark up less than 5% in that run.

Two of EPI's big bank holdings are top movers among Indian American Depository Receipts. HDFC Bank is up 4% to a record and ICICI Bank is up 4.7% and at the highest since April 2011.

 

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