INDY: Tailwinds Rise For This High-Growth Diversifier (Rating Upgrade)
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The Alpha Sieve4.74K FollowersFollow5ShareSavePlay(8min)CommentsSummaryiShares India 50 ETF is upgraded from hold to buy, reflecting improved macro conditions, strong earnings potential, and attractive risk-reward.Indian GDP growth, credit growth, and consumer confidence appear to be on the up and reflect well on this cyclical-heavy portfolio.INDY trades at 3.5x book, in line with its 10-year average, and offers much superior long-term earnings growth vs. the S&P 500, while its sensitivity to the latter is also minimal.INDY now provides a hefty yield of over 8% and we view it as one of the strong mean reversion candidates within global markets.Ongoing rupee depreciation is a concern, but US-India trade talks appear to be at the finishing line, and India could start re-attracting foreign flows due to valuations and its limited exposure to AI. leolintang/iStock via Getty Images Background The iShares India 50 ETF (INDY) is a $630M-sized product (in terms of AUM), which tracks the Indian stock market’s cardinal index—the Nifty 50. For the uninitiated, the Nifty 50 covers India’s largest 50 stocks by free-float marketThis article was written byThe Alpha Sieve4.74K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.