India’s equity markets are demonstrating remarkable strength, with the iShares MSCI India ETF positioned to capture this growth. The fund’s performance is being propelled by a confluence of positive factors, including resilient domestic economic expansion, robust corporate earnings, and favorable external conditions. Notably, declining crude oil prices, vigorous seasonal consumer spending during festival periods, and enhanced trade relations between India and the United States are collectively bolstering market sentiment.
Market Indices Reflect Bullish Trend
The underlying momentum is clearly visible in India’s primary stock benchmarks. Both the Nifty 50 and the Sensex posted substantial gains throughout October, fueled by strong quarterly corporate results and a stable macroeconomic environment. A key driver has been the banking sector, where institutions have raised their credit growth projections for fiscal year 2026. This optimism is supported by reductions in the Goods and Services Tax (GST) and persistent, healthy domestic demand.
However, investors are closely examining valuation levels. As of the latest data, the Nifty 50 is trading at a price-to-earnings (P/E) ratio of 22.4, placing it near its historical average. Capital flows have shown some variability; while foreign investors were net buyers on November 7th, preceding days in the month had witnessed net selling activity from international participants.
Portfolio Composition and Concentration
The iShares MSCI India ETF is designed to track the MSCI India Index, providing exposure predominantly to large-capitalization companies. A significant characteristic of the fund is its concentration in its largest holdings. The top ten positions constitute a substantial portion of the total fund assets, presenting investors with a notable concentration risk.
Top Ten Holdings of the iShares MSCI India ETF (as of November 7, 2025):
| Company | Weighting |
|---|---|
| Reliance Industries | 8.2% |
| HDFC Bank | 7.1% |
| Infosys | 6.8% |
| ICICI Bank | 5.9% |
| Tata Consultancy Services | 4.7% |
| Larsen & Toubro | 3.2% |
| Bharti Airtel | 2.9% |
| Kotak Mahindra Bank | 2.6% |
| Axis Bank | 2.4% |
| State Bank of India | 2.3% |
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