The iShares MSCI India ETF faces a 10.9% YTD loss amid capital outflows chasing AI trades and macro headwinds. INDA's heavy financials allocation positions it as a bet on India's domestic growth, supported by the IMF's upgraded 7% 2026 GDP forecast. Three potential catalysts—foreign selling could ease if the AI trade cools, rising growth forecasts, and a nearing U.S. trade deal—could drive INDA's recovery.
The poor performance of India's equities has a lot to do with market composition, with banks holding six of the top 15 index spots.
India's pharmaceutical industry is likely to miss its sales target for the end of the decade as U.S. tariff uncertainty and Middle East shipping disruptions weigh on exports, the head of a government-backed trade body told Reuters.
India remains the world's fastest-growing large economy, and two ETFs dominate the way U.S.
The dominant narrative surrounding Indian equities this year has been one of missed opportunity. India has been largely bypassed by the AI investment boom, with foreign investors pulling nearly $26.4 billion from local equities so far in 2026.
India's central bank held rates steady on Friday, staying on pause as it gauges the impact of the Middle East conflict on the country's currency and economy.
India's markets regulator has proposed changes to how strike prices are listed and refreshed in options contracts, aiming to prevent trading gaps when prices move sharply during the day. The Securities and Exchange Board of India, or SEBI, published a consultation paper on Monday and has sought public comments by 15 June.
A solar industry group has asked India's power market regulator to increase the cap on electricity prices on power exchanges, saying the current limit is hurting companies and slowing investment, with demand at record highs.
India has overtaken China as the world's most populous country and is positioning itself as the leading destination for manufacturing capacity that multinationals are relocating from China.
India burned more coal as heat waves lifted electricity demand. Costlier LNG made gas-fired power less competitive.
The Iran war has driven up raw material and packaging costs for India's textile industry. The sector is the country's second‑largest employer and supports more than 45 million jobs.
The U.S. Commerce Secretary Howard Lutnick visits India days after the Supreme Court struck down President Trump's tariffs as New Delhi hints at revisiting its U.S. trade deal.