Oil Price Shocks Have Hit India, But This 1 Emerging Market ETF Is Still a Buy Now Near $40

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U.S. stock markets have held together as well as can be expected, given such a dramatic and dangerous conflict.In the week’s first two days of trading, the S&P 500 Index ($SPX) is down less than 1%, while the Dow Jones ($DOWI) is off about 1%, hardly the correction one might have expected from stocks.Dear Costco Stock Fans, Mark Your Calendars for March 5SanDisk Stock Forecast: Can the Rally Continue Into 2026?Dear Broadcom Stock Fans, Mark Your Calendars for March 4Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!Goldman Sachs' (GS) CEO said at a conference in Australia yesterday that he was surprised by the “benign” reaction to the war. He surmised that investors might take a while to understand the ramifications of this conflict.In the meantime, some countries, more than others, face greater challenges due to higher oil prices; India is among them.“India’s heavy reliance on imported crude — most of it from the Gulf — makes its market vulnerable. Prolonged higher oil prices could widen the import bill, strain the current account and rupee, and put additional pressure on equities,” Economic Times reported comments from Dilin Wu, a research strategist at Pepperstone Group.That’s not great news for those investing in Indian stocks. Goldman Sachs estimates that a 20% increase in Brent Crude prices leads to a 2% decline in earnings.That’s why the iShares India 50 ETF (INDY) hit new 52-week and 2-year lows on Tuesday at $44.52, not too far off its 5-year low of $39.42 set in March 2023.If you’re a contrarian investor, you can make money over the long haul by buying this emerging market ETF in the $40s and selling it in the $50s. Here’s why.India’s stocks have retreated since mid-2024. That’s the case for INDY, which is off 17% since hitting a 52-week high of $54.87 on June 27, 2025.The ETF’s name gives away its focus: it owns the stocks of 50 of India’s largest companies. It tracks the Nifty 50 Index's performance. Launched by iShares in November 2009, the ETF has had mixed performance, which is why it only gets three stars from Morningstar. Further, the 0.65% expensive ratio for a passive index ETF is a bit stiff. Not overly so, but still a concern.I decided to write about INDY, one of the 292 Nasdaq-listed stocks that hit new 52-week lows yesterday, because of Canadian Prime Minister Mark Carney’s recent success in signing several trade deals with India, including committing to a free trade deal between the two countries to be signed by the end of 2026.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,844.25 +9.00 (+0.13%)Dow Futures48,069.00 +86.00 (+0.18%)Nasdaq Futures25,107.00 +57.50 (+0.23%)Russell 2000 Futures2,600.60 +14.20 (+0.55%)VIX23.75 +2.60 (+12.29%)Gold5,126.00 +47.30 (+0.93%)Trending tickersMRVL Marvell Technology, Inc. 75.68 -2.41 (-3.09%)COST Costco Wholesale Corporation 982.57 -24.17 (-2.40%)AMAT Applied Materials, Inc. 346.53 -11.23 (-3.14%)GE GE Aerospace 326.99 -12.82 (-3.77%)GAP The Gap, Inc. 27.20 -0.54 (-1.95%)PortfolioSign in to access your portfolioSign inTop gainersSOC Sable Offshore Corp. 13.85 +3.76 (+37.26%)TNGX Tango Therapeutics, Inc. 16.83 +4.48 (+36.28%)TTD The Trade Desk, Inc. 29.79 +4.62 (+18.36%)EXPE Expedia Group, Inc. 251.54 +30.29 (+13.69%)UNF UniFirst Corporation 262.76 +31.50 (+13.62%)Top losersAEO American Eagle Outfitters, Inc. 19.33 -3.12 (-13.90%)HYMC Hycroft Mining Holding Corporation 41.06 -6.61 (-13.86%)IE Ivanhoe Electric Inc. 13.64 -2.02 (-12.90%)CIEN Ciena Corporation 299.30 -44.25 (-12.88%)IESC IES Holdings, Inc. 426.01 -61.76 (-12.66%)Most activeNVDA NVIDIA Corporation 183.34 +0.30 (+0.16%)AAL American Airlines Group Inc. 11.79 -0.67 (-5.38%)PLUG Plug Power Inc. 2.2900 -0.1900 (-7.66%)ONDS Ondas Inc. 10.49 -0.02 (-0.19%)TTD The Trade Desk, Inc. 29.79 +4.62 (+18.36%)Top economic eventsEarnings eventsMy earnings eventsEarnings events