This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

India Moves Beyond the 'BRICs' and Its ETFs Are Hot Again

NEW YORK (TheStreet) -- Remember the BRICs? At one time the nations of Brazil, Russia, India and China were synonymous with global growth.

As so often happens throughout the turbulent history of the markets, just when sentiment reached its peak reality swung back the other way. The BRICs, a "sure-bet" on above-trend growth back in 2007, have been among the most disappointing investments in the world since then.

After a breathtaking plunge of over 70% in 2008, India and China represent the backbone of an emerging market trade that has gone nowhere while parts of the developed world have ascended to new heights. With India's new pro-business government, things might be improving for investors, which is why exchange-traded funds of Indian companies may be the way to play this development.

India's GDP has nearly doubled since 2007. While the rate of growth is slowing, it will likely continue to grow between 4% and 5% this year and next. Come 2020, the country is expected to be among the fastest growing economies in the world.

One thing that always separated India from China -- vastly superior demographics -- will still be in place. A decade from now, this will be the world's most populous country in the world. It's also one of the world's youngest countries in terms of median age.

Why have investors avoided India for so long?

The answer is twofold. On the one hand, investors in the post-2008 world are simply unwilling to take risk. The preference for quality, particularly domestic quality, has reached almost unseen heights. On the other, India has had some legitimate economic turbulence in the last few years as adjusts to a lower growth rate. The market has flattened out in response.

Within the last few months this trend of stagnation finally seems to be changing. The Sensex market has broken out to new highs, up a mind-boggling 25% since March. A lot of that has to do with the polarizing new Prime Minister, Nahendra Modi. While his social perspectives have enraged liberal secularists, the markets are buying in to his pro-business, infrastructure-oriented economic agenda.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%
YHOO $44.28 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs