Investors pulled $68 million from the fund on Aug. 31 as escalating tensions between North Korea and the US sparked a risk-off tone. By Srinivasan Sivabalan
Equity investors pulled the largest single-day amount in two years from the main US exchange-traded fund focusing on India. That didn’t stop traders from cutting bearish bets on the ETF to the lowest level since February 2015.
Markit data on the iShares MSCI India ETF shows a section of the market remains bullish on equities even as Asia’s third-biggest economy grows at the slowest pace since 2014 and valuations hover near a nine-year high. Traders have extinguished about $130 million of bearish bets on the $5.2 billion fund since March, data compiled by Bloomberg show.
Investors pulled $68 million from the fund on Aug. 31 as escalating tensions between North Korea and the US sparked a risk-off tone. The S&P BSE Sensex Index has risen 19 percent this year and trades at 18.6 times projected earnings. India’s gross domestic product rose 5.7 percent in April-June from a year earlier, missing economists’ estimates.