India country-specific exchange traded funds were among the worst areas of the global markets Monday as state elections and central bank chief’s abrupt resignation fueled uncertainty.
On Monday, the iShares MSCI India Small-Cap ETF (NYSEArca: SMIN) dropped 4.8%, VanEck Vectors India Small-Cap Index ETF (NYSEArca: SCIF) declined 4.5% and iShares MSCI India ETF (CBOE: INDA), the largest India country-specific ETF, fell 4.2%, all breaking below their short-term support at the 50-day simple moving average.
Dragging on India’s equity market, exit polls last week from state elections were the latest to send the benchmark S&P BSE Sensex Index down Monday, revealing Prime Minister Narendra Mod’s party will face a tight electoral contest in key states ahead of next year’s general election, Bloomberg reports.
The latest round of political risks has fueled uncertainty in India’s benchmark, with volatility at levels not seen since May 2016.
Further exacerbating the sell-off, India’s central bank governor Urjit Patel resigned Monday, citing personal reasons, which investors interpreted as a sign of divisions between the Reserve Bank of India and Modi’s government worsening.