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Why Indian Indexes Missed Cues from China and the US

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Jun. 19 2019, Published 9:17 a.m. ET

Indian indexes

While most Asian indexes hit a home run on June 19, the mood of the Indian stock market was somber. After starting this week deep in the red, the S&P BSE Sensex has partially recovered in the last two days. The Sensex has gained 0.17%, a far cry from the large gains seen across other Asian indexes. The NSE Nifty 50 has performed even worse, falling marginally. The Nifty 50 was the worst-performing Asia-Pacific benchmark index on June 19.

President Donald Trump and President Xi Jinping’s optimism about the trade deal and the rising expectations of a rate cut don’t seem to have made the Indian markets happy. India’s second-biggest insurer has warned that equity valuations are looking overstretched.

Even companies whose ADRs (American depositary receipt) are listed in the US showed little gains on June 19. Infosys (INFY) gained 0.23%, while HDFC Bank (HDB) gained 0.46%.

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ETFs and ADRs

On June 18, the WisdomTree India Earnings ETF (EPI) gained 0.82% on the NYSE Arca. The iShare MSCI India ETF (INDA) was a bigger gainer with a 0.95% rise. The iShares India 50 ETF (INDY) saw a 0.85% rise. All these ETFs hold Infosys and HDFC Bank.

On June 18, INFY’s ADRs gained 1.42% on the NYSE. INFY was up 0.84% in premarket trading as of 7:35 AM ET today.

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