Looking overseas, the Indian markets have seen a bit of turmoil lately, proving that, yes, the worldwide recession actually does touch emerging markets. Back in June, there was word that the government of India would work with its central bank to try to prop up the economy there and promote growth, which hasn’t happened in great measure of late.
In very recent trends, the PowerShares India Portfolio ETF (NYSE:PIN) has seen what some would call a correction in the market, as the PowerShares India Portfolio ETF peaked at about $21 per share in February, but has cratered nearly 25 percent since then, finishing Tuesday’s trading day at $16.31 – though that was up 5 cents on the day (0.3 percent). The markets in India all were slightly higher Tuesday, with the benchmark Sensex exchange finished up about 0.2 percent, with other indices also posting similar modest gains.
A couple of key India companies posted their quarterly earnings Tuesday, with Shiram Transport Finance stock finishing 1.3 percent higher after recording 13 percent growth in year-over-year assets under management, despite the net profit falling by more than 7 percent over the same quarter last year. Eclerx posted very encouraging news in its earnings report, as net sales rose more than 20 percent from the prior quarter, operating margin grew to nearly 40 percent and net profit swelled more than 60 percent. That stock rose by more than 11 percent at the end of trading.
The PowerShares India Portfolio ETF essentially mirrors the results of the several markets in India. The fund has a market cap of $346 million and a daily volume of 453,000 shares.
See this recap of the day’s activities in the India markets and elsewhere.