Investors will be keeping a close eye on ETFs that track India on Friday for any unusual moves after its market was the latest to experience a “flash crash” triggered by a glitch related to high-speed trading.
The S&P CNX Nifty Index plunged as much as 16% before trading was halted in India.
“The National Stock Exchange of India said 59 erroneous orders prompted a plunge in equities that briefly erased about $58 billion in value, underscoring the growing global concern about the integrity of financial markets,” Bloomberg News reports.
Exchange traded products that track India include WisdomTree India Earnings Fund ETF (NYSEArca: EPI), iPath MSCI India ETN (NYSEArca: INP), Powershares India Portfolio ETF (NYSEArca: PIN), iShares S&P India Nifty 50 Index Fund ETF (NYSEArca: INDY) and iShares MSCI India Index Fund (NYSEArca: INDA).
Trading volume in India’s equity market more than doubled from the recent average amid Friday’s chaos, Bloomberg said.