As the monsoon season drew to a close in India last September, the local economy looked waterlogged. The nation’s currency, the rupee, had just slid to an all-time low against the dollar, as quarterly growth fell to just 4.4%, the slowest growth rate since the global economic crisis of 2009. In response, Indian stocks accelerated their declines as it became increasingly apparent that any economic turnaround would be slowing in coming. Yet as is often the case with many markets, sectors, or even individual stocks, the point of maximum pessimism is often the best time to invest. That was surely… Read More
As the monsoon season drew to a close in India last September, the local economy looked waterlogged. The nation’s currency, the rupee, had just slid to an all-time low against the dollar, as quarterly growth fell to just 4.4%, the slowest growth rate since the global economic crisis of 2009. In response, Indian stocks accelerated their declines as it became increasingly apparent that any economic turnaround would be slowing in coming. Yet as is often the case with many markets, sectors, or even individual stocks, the point of maximum pessimism is often the best time to invest. That was surely the case with India stocks, which have staged a remarkable comeback. In just the past 10 months, India’s SENSEX index has rallied an impressive 35%, and many India-focused exchange-traded funds have done a lot better than that. (These ETFs have benefited from a rebound in the rupee, which has magnified gains.) #-ad_banner-#The catalyst behind this remarkable rebound is quite simple: Narendra Modi. India’s new prime minister began his campaign last fall on a platform of economic rejuvenation, and Indian stocks have already begun to reflect an anticipation of much better days ahead. India’s Economic Times has… Read More