WisdomTree India Earnings (EPI) jumped 2% Monday to a five-year high of 22.17. It surged 13% the prior two weeks as Modi's victory grew more likely; it is up 28% year to date.
iShares MSCI EAFE Index (EFA), tracking developed foreign markets, and iShares MSCI Emerging Markets Index (EEM). The funds are up 2% and 3% this year.
EGShares India Small Cap (SCIN) and EGShares India Infrastructure (INXX) both vaulted 6%, outdoing every other nonleveraged ETF on the U.S. stock market. They've spiked 39% and 34%, respectively, this year.
The new government is expected to invest massively in roads, utilities, sewage treatment, rail and air transportation, education, health care and manufacturing. The financial sector, including banks, insurance, equity and bond markets — all will see liberalization and competition to make finance available for all those infrastructure projects.
India's stock market has rallied despite cuts in earnings outlooks, indicating that investors are optimistic for recovery in fundamentals