JPMorgan’s India equity preview favors domestic cyclical plays By Investing.com

Market Overview: The U.S. stock market is showing positive trends with the Nasdaq 100 reaching an all-time high and various sectors, particularly technology, performing well; notable stocks include Robinhood, Spotify, and Uber as top picks by analysts.

Nike's Earnings Report: Nike reported earnings that exceeded expectations but highlighted challenges due to tariffs and reliance on China, leading to a mixed reaction in its stock price, which has seen a recent uptick despite being down for the year.

Market Overview: The S&P 500 and Dow ended higher, with significant attention on upcoming earnings reports from major companies like Apple and Amazon, both of which have seen substantial declines in their stock prices over the past three months.

CEO Insights and Economic Concerns: Jim Cramer highlighted leaders in various sectors, including ServiceNow and Starbucks, while also addressing potential risks for U.S. companies with overseas franchises amid changing global sentiments.

Market Performance and Analyst Outlook: India's ETFs have seen recent losses between 2.9% to 8.8%, prompting analysts to express divided opinions on the stock market's future, with Goldman Sachs downgrading Indian equities due to slowing economic growth and high valuations.

Investment Strategies and Future Predictions: While some firms like UBS remain optimistic about India's long-term growth potential, concerns over weakening consumer spending and competition from China may impact investor sentiment, leading to a cautious approach towards undervalued ETFs.

Federal Reserve Rate Cut: The Federal Reserve announced a 50-basis-point cut in interest rates, marking its first reduction since March 2020, with expectations for further cuts by the end of the year and into 2026, leading to optimism in global markets and commodities.

ETF Performance Highlights: Key sectors such as Utilities and India-focused ETFs have reached 52-week highs due to the favorable economic conditions, while gold bullion ETFs also benefited from the Fed's easing policies and a weaker dollar.

Overview of NFTY ETF: The First Trust India NIFTY 50 Equal Weight ETF (NFTY) launched in 2012, aims to provide broad exposure to the Asia-Pacific emerging market by tracking the NIFTY 50 Equal Weight Index, which consists of the 50 largest Indian securities. It has a market cap of over $269 million and an expense ratio of 0.80%.

Performance and Alternatives: NFTY has shown a year-to-date increase of 15.76% and a one-year rise of approximately 30.81%. Investors may also consider other ETFs like WisdomTree India Earnings ETF (EPI) and iShares MSCI India ETF (INDA), which have lower expense ratios and larger asset bases.

• Launched on 02/14/2012, provides broad exposure to Asia-Pacific (Emerging) ETFs.

• Offer non-cap weighted strategies for investors preferring stock selection over market efficiency.
• Select stocks based on fundamental characteristics or a combination for better risk-return performance.

• Managed by First Trust Advisors with $241.10 million in assets.
• Seeks to match the NIFTY 50 EQUAL WEIGHT INDEX performance.
• Operating expenses at 0.80% annually.

• Holds top assets like Tata Motors Limited, Bharat Petroleum Corporation Limited, and Bajaj Auto Limited.
• Top 10 holdings account for 23.61% of total assets.

• YTD return of 10.47%, 12-month return of 29.02%.
• Alternatives include WisdomTree India Earnings ETF (EPI) and iShares MSCI India ETF (INDA).