Investors are pulling money from exchange traded funds benchmarked to India amid a sell-off in the country’s equity and currency markets.
The largest India-related ETFs listed around the globe have shed nearly 20% of their assets in the past two months, DNA reports.
“The redemption pressures, which have had a bearing on how markets have behaved in recent times, are fairly clear. Investors’ risk appetite has been waning on account of global issues, more so for Indian equities. The India story and the country’s economic stability are being questioned by foreign investors,” Saurabh Mukherjea, head of equities at Ambit, said in the article.
According to Bloomberg data, the assets under management of about five of the largest India focused ETFs have dropped to about $2.8 billion from $3.4 billion. [ETF Chart of the Day: India]
The outflows have accelerated recently, according to the report. [India ETFs Slammed; Rupee hits Low Against Dollar]