For investors seeking momentum, Franklin India ETF (FLIN Quick QuoteFLIN - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 34.38% from its 52-week low price of $26.82/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:

FLIN in Focus

The underlying FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large and mid-capitalization stocks. The fund has major exposure to the financial (22.71%), information technology (12.58%) and consumer discretionary (11.55%) sectors. The product charges 19 bps in annual fees (See: all Emerging Asia-Pacific ETFs).

Why the Move?

Recently, India’s stocks have shown an upward trend, attributed to optimistic expectations surrounding the upcoming elections. Improved ratings from agencies like IMF make the country a good investment option. Driven by robust and resilient domestic demand, IMF revised the country’s growth potential upward by 40 basis points, indicating a growth rate of 6.7% for the 2024 fiscal year.

Additionally, an increasing workforce population, an uptick in consumer spending and a surge in new business establishments are favorable.

More Gains Ahead?

Currently, FLIN has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 30.96, which gives cues of a further rally.