India’s Equity Surge: Franklin ETF Captures Market Momentum

India's stock markets are demonstrating remarkable strength, with the Franklin FTSE India ETF positioned to capitalize on this sustained upward trend. Robust corporate earnings and encouraging economic indicators are fueling investor optimism, though questions remain about the longevity of this vigorous expansion.

The foundation for India's economic ascent appears solidly built. A significant demographic advantage, driven by a youthful population, combines with substantial government infrastructure investment to create powerful fundamental drivers. Economic forecasts project India will secure its position as the world's third-largest economy by 2027.

This favorable backdrop has not gone unnoticed by international capital. Foreign investors returned to Indian markets in November 2025, recording net inflows after previous periods of uncertainty. The benchmark Sensex index continues its approach toward record territory, reflecting growing confidence in the country's growth narrative.

Earnings Rebound Accelerates Market Advance

Corporate performance has provided the most immediate catalyst for the current rally. Indian companies reported their first quarterly profit expansions in over a year during the July-September 2025 quarter, marking a significant turnaround. Market researchers now anticipate double-digit earnings growth rates throughout the second half of the current fiscal year, with this positive trajectory expected to extend into fiscal year 2027.

Should investors sell immediately? Or is it worth buying Franklin FTSE India ETF?

Policy initiatives from New Delhi and potential trade agreements—particularly with the United States—are viewed as additional factors contributing to the enthusiastic market sentiment.

ETF Construction and Strategic Positioning

The Franklin FTSE India ETF offers targeted exposure to this dynamic market through a portfolio of 277 securities. The fund maintains a strategic emphasis on large and mid-capitalization companies, with its ten largest holdings carrying substantial weight within the overall allocation.

This concentrated approach provides focused access to India's leading enterprises, though it necessarily involves specific market risks alongside the potential rewards. The current market environment underscores India's growing prominence within global investment portfolios, with the ETF serving as a conduit for international participation in this distinctive growth story.