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 (NYSE:FXI) and Xtrackers Hvst CSI 300 China A-Shs ETF (NYSE: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 (NYSE:EIDO), Ishares Msci Thailand Etf (NYSE:THD), and iShares MSCI Malaysia ETF (NYSE: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 (NYSE:EPI).

Zones

The buy zone is 🔒. To see the locked content, please click here to start a free trial.

The short term rating is 🔒.

The medium term rating is 🔒.

The long term rating is a 🔒.

What To Do Now

Those in India ETF EPI may consider continuing to hold. Those not in EPI may consider following the parameters given above.

The Arora Report is known for its accurate calls. The Arora Report correctly called the 2008 financial crash, the start of a mega bull market in 2009, the COVID crash, the post-COVID bull market, and the 2022 bear market. Please click here to sign up for a free forever Generate Wealth Newsletter.

This content is for informational purposes only and is not intended to be investing advice.