For investors seeking momentum, First Trust India NIFTY 50 Equal Weight ETF (NFTY Quick QuoteNFTY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 17.84% from its 52-week low price of $40.74/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

NFTY in Focus

The underlying NIFTY 50 Equal Weight Index is equally weighted and tracks the performance of the 50 largest and most liquid Indian securities listed on the National Stock Exchange of India. The product charges 80 bps in annual fees (See: all the Asia-Pacific ETFs here).

Why the Move?

India's GDP growth in 2023 has been spectacular, rising to an astounding 7.2%. India's GDP has grown to $3.75 trillion from almost $2 trillion in 2014, propelling it to the fifth-largest economy in the world from tenth. India's economic growth, population surge and expanding labor force raise optimism about its potential.

India's benchmark indices reaching new record highs can be attributed to the impressive performance of its information technology (IT) stocks. The IT industry, heavily dependent on clients from the United States, benefited from positive economic data, alleviating concerns of a slowdown and enhancing market sentiment. Strong foreign inflows, stable inflation and consistent corporate earnings growth have also bolstered confidence in India’s equities market.

More Gains Ahead?

Currently, NFTY has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 14.73.