Morgan Stanley Backs India ETFs Despite 8.52% MSCI India Drop as Credit Growth Hits 17.7%
Updated
Updated · ETF Trends · Jun 22
Morgan Stanley Backs India ETFs Despite 8.52% MSCI India Drop as Credit Growth Hits 17.7%
2 articles · Updated · ETF Trends · Jun 22
Summary
Morgan Stanley said investors should consider India ETFs including WisdomTree’s EPI and INDH even after the MSCI India Index fell 8.52% this year, arguing the selloff may have created a near-term entry point.
17.7% bank credit growth and 27% May passenger-vehicle sales underpin that view, with the bank citing resilient macro data and a growth trajectory that could support Indian risk assets.
EPI and INDH have both outperformed the MSCI India Index year to date, and each allocates about 24% to financial services, making stronger banking trends especially relevant to their holdings.
India is still lagging some tech-heavy emerging markets such as South Korea and Taiwan on earnings momentum, which Morgan Stanley said has diverted investor attention for the next three to four quarters.
MSCI emerging-market stocks are up 26% this year, leaving India a notable underperformer even as Morgan Stanley argues its long-term growth outlook remains stronger than many global peers.