Best BRIC Nation To Start 2012: India

by: Christian Magoon

Indian markets and the ETFs that track them shot forward into the first week of 2012 gaining around 4% on average. With inflation numbers continuing to fall, expectations that the Reserve Bank of India will soon cut interest rates and a new measure announced opening Indian markets up to foreign investors - markets responded favorably despite continued tumult in Europe. Here's a performance chart of all U.S. listed India ETFs, courtesy of

(Click to enlarge)

India ETFs started 2012 with a very solid week of performance.

The strong start to 2012 was a welcome reversal for investors in Indian markets as 2011 was a year of losses of 25% or more. In fact India finished 2011 as the worst performing market versus its BRIC - Brazil, Russia, India and China - peers. Here's the 2011 performance chart courtesy of showing some of the leading country specific BRIC ETFs.

(Click to enlarge)

India was the worst performing BRIC in 2011.

However, India took the performance crown for the first week of 2012 as represented by the leading country specific BRIC ETFs - Brazil: EWZ, Russia: RSX, India: PIN, and China: FXI respectively. Here's the performance chart of those ETFs courtesy of Google finance.

(Click to enlarge)

India led the BRIC markets in terms of performance for the first week of 2012.

Going forward key cross currents affecting Indian markets will be the severity of the latest EU crisis flare up, the Jan 15th easing of foreign investor restrictions in India, new rate guidance from the Reserve Bank of India based off inflation data and the strength of the rupee. As always, will continue to cover the latest from India.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Christian Magoon is the publisher of