India’s markets kicked off November on a choppy note. The NIFTY 50, representing 50 of the largest Indian companies listed on the National Stock Exchange, slipped nearly 1% early in the month before staging a 2.8% rebound.
The benchmark index is now up about 1.7% for November and roughly 11% year to date. India’s economic outlook remains optimistic, supported by robust consumer demand, strong infrastructure spending, rising foreign inflows, cooling inflation and the prospect of easing trade tensions between New Delhi and Washington.
Moreover, as emerging markets gain attention amid improving growth projections for next year, India remains a key market to watch. Supportive demographics, increasing AI-related investments, progress in chip design and digital infrastructure and rapid digital transformation further strengthen its long-term appeal.
This optimism is further underscored by recent economic growth upgrades from agencies and institutions such as Moody’s Ratings, HSBC and Goldman Sachs.
Higher Growth Expectations Set a Positive Tone
According to Reuters, Moody’s Ratings anticipates India’s economy to expand about 6.5% through 2027, driven by strong infrastructure investment and healthy consumer demand.
Additionally, HSBC forecasts that India’s BSE Sensex could advance about 10% by the end of 2026, potentially reaching 94,000. The firm also upgraded Indian equities to ‘overweight’ from ‘neutral’ in September, becoming one of the first major brokerages to adopt a more positive outlook on the market.
As per Reuters, HSBC noted that Indian equities continue to offer relative value compared to China, supported by early signs of an earnings recovery and moderating valuations, which make the economy look attractive once again.
According to the aforementioned Reuters article, HSBC also noted that India is well positioned to attract renewed emerging-market inflows as investors seek growth opportunities in Asia beyond AI. The analysts added that fiscal and monetary policy support should help drive a pickup in growth in early 2026.
According to J.P. Morgan’s Rajiv Batra and Rushit Mehta, as quoted on another Reuters article, double-digit growth is expected to accelerate in the latter half of fiscal year 2026 and continue into fiscal year 2027.
Solid Macro Trends Reinforce the Investment Case
Corporate earnings in India have entered their most robust recovery phase in over a year, prompting brokerages to adopt a more constructive view on second-half profit momentum as consumption broadens.
According to Reuters, easing inflation, significant tax reductions and accommodative monetary settings are boosting demand, with early festive-season data showing a pickup in discretionary buying.
Moreover, as per analysts quoted on Reuters, India is poised to receive additional foreign inflows as global sentiment weakens on concerns that valuations in AI-exposed stocks have become stretched.
Exploring India ETFs
Against this backdrop, we have highlighted below a few India ETFs that investors can consider to capitalize on the country’s optimistic outlook.
Investors can consider iShares MSCI India ETF INDA, WisdomTree India Earnings Fund EPI, Franklin FTSE India ETF FLIN, iShares India 50 ETF INDY and First Trust India NIFTY 50 Equal Weight ETF NFTY.
INDA has gathered an asset base of $9.6 billion, the largest among the other options. Regarding annual fees, FLIN is the cheapest option, charging 0.19%, which makes it more suitable for long-term investing.
With a one-month average trading volume of about 5.71 million shares, INDA is the most liquid option, offering investors easier entry and exit while minimizing the risk of significant price fluctuations, ideal for active trading strategies. However, investors considering India are encouraged to adopt a long-term approach to the South Asian economy.
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WisdomTree India Earnings ETF (EPI): ETF Research Reports
iShares MSCI India ETF (INDA): ETF Research Reports
iShares India 50 ETF (INDY): ETF Research Reports
Franklin FTSE India ETF (FLIN): ETF Research Reports
First Trust India NIFTY 50 Equal Weight ETF (NFTY): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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