Indian ETFs Jump On Plan To Up Foreign Investment
Indian ETFs surged Thursday after the New Delhi government proposed letting foreign investors take bigger stakes in Indian insurance and pension management companies.
IPath India ( INP ),PowerShares India ( PIN ) andWisdomTree India Earnings ( EPI ) all gapped up more than 2%.WisdomTree Dreyfus Indian Rupee ( ICN ) rose 0.8%, as the Indian currency continued to respond to government efforts to strengthen the currency and as the dollar weakened against most currencies.
Financial companies account for about 26% of assets in INP, 20% in EPI and 12% in PIN.
The proposal for foreign direct investment, part of amendments to the Pension Fund Regulatory and Development Authority bill, would allow foreign investors to take up to a 49% stake in insurance companies and pension funds. Both local and foreign companies have been pressing for higher caps on foreign investment.
The bill next goes before the parliament, where it is expected to face stiff opposition.