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

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 BJP - seen as more business friendly - would win the general elections

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.

HT Image

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.