How to Play India's Election Results With ETFs

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May 16 (Bloomberg) –- Bloomberg’s Eric Balchunas discusses investing in Indian ETFs with Julie Hyman on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

Best positioned for the new regime.

Really this is a huge change in india's politics in the nation after decades of a family dynasty essentially having control.

And of course, you can play it with a general indian etf, but you have some that are more nuanced and targeted.

Talk me through this.


The large cap indian etf's are great.

If you want to go completely outside into something very targeted for this actual election, check out the market vectors india's small cap.

Small cap is closer to the ground.

These are more isolated, more dependent on the local economy, domestic demand, infrastructure.

That is exactly what they are going for.

The infrastructure in india is awful.

This is where the money will be spent.

They've got to improve it.

Investors are starting to flock into this to play this.

Up six percent today.

That speaks to the second etf, which is the infrastructure index.

It looks at indian infrastructure companies -- there are foreign firms that will get a crack at infrastructure in india, or will it be mostly indian firms?

This one is just indian firms.

People like that in international etf's. this one is very targeted.

30 stocks.

This one will be a bit volatile.

It is going to move because it is concentrated.

This one has had the formula to pop over six percent today.

This one is up the most.

Infrastructure is again a big thing.

Finally, the rupee.

I mentioned this today.

There is a way to play this with the etf?

Sure, the indian rupee etf strategy -- the currency is up seven percent, but the yield is up eight percent because the short-term yield is so high.

The prime minister is raising rates to control inflation.

It should do well, given his motive to do that.

This is probably a safe play if you want to go with the currency.

I imagine that one also had a good reaction today.

Yeah, up 2.5% based on what is happening in india.

Really good stuff.

We are out of time.

We will get to gold next week.

This text has been automatically generated. It may not be 100% accurate.


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