Benzinga - by The Arora Report, Benzinga Contributor.
Signal(s) to enter, add, reduce, exit, hold or change.
GDP India's GDP grew by 7.8% in the April - June period vs. 7.7% consensus. This is a very strong growth number and the fastest in a year.
India Vs. China India is ascendant. As a comparison, we previously shared with you in the Morning Capsule dated July 17 that China's GDP grew by 6.3% year-over-year vs. 7.1% consensus. In China the growth was slower than expected.
The ETF's of choice are iShares China Large-Cap ETF (ARCA: FXI) and Xtrackers Hvst CSI 300 China A-Shs ETF (ARCA: ASHR).
G-20 The G-20 summit is in India next week. G-20 represents the world's 20 largest economies. President Biden is attending. There was hope that Biden and China's President Xi would meet in India. Now, there are reports that Xi is likely to skip the summit. For the longest period, China was the fastest growing economy. Now, India is eclipsing China. There is speculation that the reason behind Xi skipping the meeting is increasing rivalry between India and China.
Supply Chain Corporations are rapidly shifting supply chain out of China. India is a beneficiary. Other beneficiaries are Vietnam, Indonesia, Thailand, and Malaysia.
The ETF's of choice are VanEck Vietnam ETF (BATS: VNM), iShares MSCI Indonesia ETF (ARCA: EIDO), Ishares Msci Thailand Etf (ARCA: THD), and iShares MSCI Malaysia ETF (ARCA: EWM).
Analysis India is suitable for both strategic and tactical positions. India is the best growth story among large economies in the world.
India's long term future is bright, but in the short term, the market is technically overbought and valuations are expensive.
ETF The ETF of choice is WisdomTree India Earnings ETF (ARCA: EPI).
Zones The buy zone is