India Capital boosted by banks and financials


Large exposure to commodities, banks and financials helped give the India Capital Fund an estimated 10.58% boost in March.

Dollar weakness initially helped strengthen commodities, explains India Capital Management's Jon Thorn. The fund's financials and banking exposure had been increased throughout the first quarter, continuing a long-term trend of significant exposure to this sector, which had been so beaten down it was only a matter of time before the tide turned, he says.

The short-term outlook for India remains unpredictable, but Thorn focuses on India's strong, sustained, consumer-based GDP growth, which he says is supported by long-term demographic trends.