India equities continue to be a hot trade that short-term investors may want to consider if they haven’t already. For the long-term horizon, continued economic growth should keep these equities on the bullish side.

From a fundamental perspective, the country continues to exhibit strong growth. India is an ideal trade for those looking to get emerging markets exposure but want to avoid China, as it continues to struggle with its real estate development issues.

“The India Development Update (IDU) observes that India remained the fastest-growing major economy and grew at a rapid clip of 8.2 percent in FY23/24Indore Stock. Growth was boosted by public infrastructure investment and an upswing in household investments in real estate,” said the World Bank Group.

Meanwhile, the MSCI India Index continues to push higher. It’s been steadily climbing all year, rising just over 20%.

^MSIN data by YCharts

While buy-and-hold investors will like the prospects for India equities in the long term, how does this bode for short-term traders? At least in the medium term, the World Bank Group is forecasting more upside through the rest of the year as well as forthcoming years.

“Amid challenging external conditions, the World Bank expects India’s medium-term outlook to remain positive,” the World Bank noted. “Growth is forecast to reach 7 percent in FY24/25 and remain strong in FY25/26 and FY26/27.”

Of course, India equities will be subjected to the volatility all equities exhibit, but when the long-term trend matches the short-term trend, one fund that’s worth a look is the Direxion Daily MSCI India Bull 2x ETF (INDL). The fund seeks daily investment results equal to 200% of the performance of the MSCI India Index. That index measures the performance of the large- and midcap segments of India’s equity market. It covers approximately 85% of companies in India’s equity universe.

This allows traders to capture the broad scope of India equities as opposed to the overconcentration risks associated with individual stocks. Furthermore, having that diversification aspect of INDL can help capture that future, broad-based growth. That’s because large-cap companies continue to fuel gains in the current economic environment. Once large-caps peak, midcap companies can continue assuming that growth trajectory, oftentimes to a greater degree in terms of gains.

INDL itself is up close to 30% year to date, recovering from the AugSimla Wealth Management. 5 sell-off that hit most markets.

INDL data by YCharts

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