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EGShares India Consumer ETF (INCO)

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  • Mon, Mar. 16, 12:06 PM
    • "If the bond market were to lose confidence in the Central Bank of Turkey's independence, the downside for Turkish assets could be significant," say the managers of the JOHCM Emerging Market Opportunities Fund (MUTF:JOEAX), explaining why they don't own any Turkish stocks. "President Recep Tayyip Erdogan displays a lack of commitment to international norms of corporate governance, conventional monetary policy and central bank independence."
    • The fund is overweight India though, with the managers noting PM Modi's reforms - previously considered impossible - are being delivered. They also call Raghuram Rajan one of the world's best central bank governors.
    • The fund is ahead 1.8% to date, while the iShares Turkey ETF (NYSEARCA:TUR) is down 19%, and the iShares India ETF (BATS:INDA) is up 7.2%.
    • India ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | 1 Comment
  • Thu, Mar. 12, 11:05 AM
    • Growth in the coming fiscal year (starts April 1) is now seen at 7.5% vs. the previous prediction of 6.3%. That would also be an acceleration from the current fiscal year's (ends March 31) growth of 7.2%.
    • The change comes after the Indian government revised its methodology for calculating GDP, and the adjusted data has surprised many be showing far faster growth in recent years than originally estimated.
    • For its part, the India's Ministry of Finance sees GDP growth of 8.1-8.5% in the coming fiscal year.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | 2 Comments
  • Thu, Mar. 5, 2:48 PM
    • "Ultimately, the bullish case for India rests on two pillars: its favorable demographics and the scope for catch-up from a very low base in investment, infrastructure and productivity," says the team from Goldman, not concerned with that country's lofty stock valuations.
    • Reasons for optimism over the next two years: A cyclical recovery has begun, macro imbalances have been reduced, the external environment - particularly low oil prices - is benign, and structural reforms are underway in the government.
    • The key risk, says Goldman, is a loss of reform momentum, or that weak job growth leads to more populist policies.
    • Expecting earnings growth of 15% for MSCI India over the next two years, the team wants to be overweight the country, and continues to recommend a basket of India, Taiwan, and Turkey as one of its best trades.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    • Previously: India cuts rates; stocks hit record highs (March 4)
    | 2 Comments
  • Wed, Mar. 4, 1:58 AM
    • The Reserve Bank of India surprised markets on Wednesday by cutting rates for the second time this year, joining a world-wide trend of monetary easing that is driving global interest rates to multi-year lows.
    • Citing easing inflation and weakness in parts of the economy, the central bank lowered its benchmark rate by 25 basis points to 7.5%.
    • The move sent India's Sensex index to an all-time high of 30,024.74, breaking the key 30,000-level for the first time.
    • Sensex +0.6% at 29,768.77.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | 14 Comments
  • Mon, Mar. 2, 2:19 AM
    • In the biggest change to its monetary policy since opening up its economy more than two decades ago, India's central bank and finance ministry have agreed to introduce inflation targeting to rein in a long history of volatile price rises.
    • The 4% inflation target for the 2016/17 fiscal year will be symmetrical, seeking to keep consumer price growth within two percentage points on either side of the central target.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Fri, Feb. 27, 4:40 AM
    • India’s Finance Ministry has projected the country's economic growth to accelerate to a four-year high of between 8.1%-8.5% in the fiscal year starting April, making the South Asian nation one of the fastest-growing economies.
    • The latest projection is much higher than the 7.4% growth the ministry forecast for this fiscal year, as falling oil prices and the government’s commitment to implementing economic reforms have improved the country's outlook.
    • Sensex +1.3% to 29,129.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Tue, Feb. 3, 8:54 AM
    • As expected, the Reserve Bank of India held ints benchmark repo rate steady at 6.5% overnight, but Governor Raghuram Rajan has bubbles on his mind as he notes "boosted stock markets across the world," thanks to the ECB's QE program.
    • Year-to-date, the Sensex is higher by 6.3% and the rupee is ahead 2% vs. the dollar.
    • And what might prompt more rate cuts? "Key to further easing are data that confirm continuing disinflationary pressures," says the bank. "Also critical would be sustained high quality fiscal consolidation."
    • The Sensex slipped 0.4% overnight.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Fri, Jan. 30, 2:41 PM
    • India's largest private-bank ICICI Bank (IBN -4.5%) reported FQ3 profit short of expectations after gross non-performing assets rose 35 basis points from a year ago to 3.4%. Net non-performing assets rose 18 bps from last quarter and 33 bps from a year ago to 1.27%.
    • The country's 2nd largest bank by assets, Bank of Baroda (OTC:BBKQYfell 11% in Mumbai after Q3 profit slumped 68% to 3.34B rupees vs. analyst estimates of 12.5B.
    • The S&P BSE Bankex Index fell 3.1%, it's worst performance in a year, and the Sensex fell 1.7%.
    • HDFC Bank (HDB -3.8%)
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | 3 Comments
  • Thu, Jan. 15, 4:02 AM
    • India’s central bank surprised the market with an early-morning rate cut today in a move to help improve growth in Asia’s third-largest economy.
    • Stocks, bonds and the rupee surged after Governor Raghuram Rajan lowered the repurchase rate to 7.75% from 8%, the first rate reduction in nearly two years, as lower food and oil prices cooled inflationary pressures.
    • India's NSE index is up 2.7%.
    • ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, ICN, INR, SMIN, INCO
    | 4 Comments
  • Fri, Jan. 9, 2:26 PM
    • With domestic economies slowing, the key theme is to find countries and stocks within those countries most exposed to external demand, says the Goldman team.
    • Taiwan is the "most concentrated export story," they say, and also happens to be well-insulated from a rising rate environment in the U.S.
    • Taiwan ETFs: EWT, FTW, QTWN; and there's also the FTSE Emerging Markets ETF (NYSEARCA:VWO) - which has Taiwan Semiconductor (NYSE:TSM) as a top holding.
    • India and Turkey are two of the "prime beneficiaries" of lower oil prices, says Goldman, looking for continued improvement in their current account balances. The two countries' markets may also benefit from domestic rate cuts.
    • India ETFs: EPI, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    • Turkey ETFs: TUR
    | 3 Comments
  • Nov. 18, 2014, 1:57 AM
    • After finalizing a free-trade agreement with China yesterday, Australia is now pushing for a comprehensive trade deal with India.
    • "We want to go further and that's why the next priority for Australia is a comprehensive economic partnership agreement with India," says PM Tony Abbott. "If I may say so, this is a moment in time. This is the time to get this done."
    • Trade between Australia and India stands at around $15B a year, or just a tenth of that between Australia and China.
    • ETFs: EPI, EWA, INDY, SCIF, PIN, INDL, INP, INXX, INDA, SCIN, AUSE, SMIN, INCO, KROO, EWAS, FAUS, QAUS
    | Comment!
  • Oct. 24, 2014, 11:40 AM
    • After near 30% YTD gains in the major market averages, India's P/E premium to the world of about 20% is near a 3-year high, according to Credit Suisse.
    • "If the global readjustment stays orderly, India should be able to outperform," says the Credit Suisse team of Neelkanth Mishra and Ravi Shankar, but 56% of Nifty Fifty (INDY +0.4%) revenues are not in rupees, and the remaining 44% includes banks exposed to the globally-dependent names.
    • Sectors especially susceptible to a global growth hiccup are energy, metals, and the banks exposed to them, but consumption (INCO +0.7%), low-interest rate beneficiaries, and telecom and cement producers are better-insulated.
    • ETFs: EPI, SCIF, INDY, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Oct. 6, 2014, 2:41 PM
    • "Proactive stimulus measures and restored political stability" are cited by Credit Suisse as it upgrades Thailand to a Buy from Neutral. The team note's last week's approval of a $11B spending package (roughly 2.8% of GDP).
    • ETFs: THD
    • Indian stocks need to take a breather from a big run, says Credit Suisse, lowering the country to Neutral from Buy.
    • ETFs: EPI, SCIF, INDY, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    • Valuation is a concern for Indonesia, says Credit Suisse, cutting the country to Sell from Neutral. At 14.4x forward earnings, stocks are at a 16% premium to their 10-year historical average at the same time 3-month revisions of consensus earnings have tuned south.
    • ETFs: IDX, EIDO, IDXJ
    | 1 Comment
  • Oct. 1, 2014, 3:35 AM
    • President Barack Obama and India's new Prime Minister Narendra Modi announced the need for more economic collaboration yesterday, while addressing concerns that they have grown apart.
    • While military ties and trade in military equipment between the two countries have increased, the economic relationship has been rockier, with the U.S. frustrated over India's failure to open its economy to more foreign investment.
    • Other areas of discussion included maritime security, counter-terrorism cooperation, clean energy and climate change.
    • ETFs: EPI, SCIF, INDY, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Sep. 19, 2014, 3:25 PM
    • The Sensex edged higher this week, bringing its 6-week move to a gain of 7%, and its YTD advance to 28%. The big gain this week came amid a rare visit from China's premier and the pledging of $20B in investments in India over the next five years.
    • Credit Suisse this week says India's banks - despite maybe being the most richly valued in Asia - have upside. They trade at 3x trailing book value, but that's inline with their 10-year average. What they have going for them now is improved governance, an accelerating economy, and interest rate hikes now in the rearview mirror. The team's favorite plays (trading in the States): ICICI Bank (IBN -1.8%), HDFC Bank (HDB -0.8%).
    • ETFs: EPI, SCIF, INDY, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
  • Sep. 15, 2014, 1:06 PM
    • India investors waiting for a confirmed upturn in the economy following Narendra Modi coming to power in May, will have to wait a bit longer as the most recent data is decidedly mixed.
    • While inflation has slowed to 7.8% vs. the central bank's target of 8% by the start of next year (target is 6% for 2016), industrial production grew just 0.5% Y/Y in July, down sharply from June's 3.4% and May's 5%.
    • The most recent data show exports in August of $26.96B, up 2.35% Y/Y, and imports of $37.8B up 2%.
    • The Sensex dipped 0.9% last night, but remains one of the globe's biggest gainers this year. EPI +30.6%, PIN +26% YTD.
    • ETFs: EPI, SCIF, INDY, PIN, INDL, INP, INXX, INDA, SCIN, SMIN, INCO
    | Comment!
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INCO Description
The EGShares India consumer exchange-traded fund (ETF) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Consumer Index, a 30 stock free-float adjusted market capitalization index designed to measure the market performance of companies in the consumer sector of India. The index consists of common stocks that are listed on National Stock Exchange and Bombay Stock Exchange. This index was incorporated on April 1, 2007.
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Country: India
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