Slack growth, the falling rupee and a widening current account deficit are among the factors that prompted foreign investors to sell nearly $3 billion in Indian shares combined in June and July. India has trade deficits with China, Switzerland, Saudi Arabia, Iraq, Kuwait, Qatar, Venezuela, Nigeria, Australia, and Indonesia, among dozens of others. [India ETF Lowest Since 2009 on Falling Rupee]
As for Rajan, investors will want to see the new RBI chief do his best Ben Bernanke impression and so quickly. EPI, the largest India ETF, is trading at its lowest levels in more than four years and if the fund falls below $14, it will mark the first time it has done so since May 2009.
WisdomTree India Earnings ETF
ETF Trends editorial team contributed to this post.