IFN: Rising Crude Pressures Equities While Currency Depreciation Drags On USD Returns

IFN, an ETF focused on Indian equities, has significantly underperformed the S&P 500, risk-free US returns, and even Indian benchmarks on a currency-adjusted basis. The recent energy spikes have resulted in further pressure on domestic equities and the currency. Elevated oil prices directly affect the current account balance, along with an impact on GDP. IFN is rated as a sell, rising energy prices act as a negative for equities while persistent currency depreciation erodes USD-denominated returns, making broad-based Indian equity exposure unattractive for now.