Indian Banks Just Made Your 401k a Little Fatter

The biggest Indian companies just added over $50 billion to their combined value in a single trading session, and if you own any broad international funds in your retirement account, you probably made money without knowing it. HDFC Bank and ICICI Bank led the charge as eight of India's ten most valuable companies saw their stock prices surge like rockets fueled by pure investor greed and optimism. This matters because India represents roughly 18 percent of the MSCI Emerging Markets Index, which means your Target Date 2050 fund or that Vanguard International Stock fund you bought three years ago and forgot about just got a nice little bump. The Indian rupee has been acting like a caffeinated squirrel lately, bouncing around as foreign investors pile into Indian stocks faster than tourists at a Vegas buffet. Banks drove this rally because everyone suddenly remembered that India has 1.4 billion people who might want mortgages and credit cards someday. Your Fidelity statements might look a tiny bit less depressing this month thanks to a bunch of bankers in Mumbai having a really good day. The real kicker is that most Americans have no idea they even own pieces of these companies through their index funds, making this the financial equivalent of finding twenty bucks in your winter coat