India country-specific exchange traded funds were among the worst areas of the market Monday as rising energy prices dragged on the outlook for Asia’s third-biggest economy.
Among the worst performing non-leveraged ETFs of Monday, the iShares MSCI India Small-Cap ETF (NYSEArca: SMIN) and VanEck Vectors India Small-Cap Index ETF (NYSEArca: SCIF) declined 2.5%, both breaking below their long-term support at the 200-day simple moving average. Meanwhile, the iShares MSCI India ETF (CBOE: INDA) and WisdomTree India Earnings ETF (NYSE: EPI) both decreased 2.4% as the benchmark S&P BSE Sensex Index posted its biggest one-day drop in four months.
India’s benchmark fell 1.3% at the close in Mumbai while the NSE Nifty 50 Index retreated 1.4% as the price fo crude jumped to the highest level in almost six months in response to the U.S. government’s plans to remove sanction waivers that allowed buyers to acquire Iranian crude, Bloomberg reports.
Iran is India’s third-biggest crude oil supplier and sanctions would increase the import prices on oil for a country that relies on foreign supplies to meet about 80% of its energy requirements.
Nevertheless, India’s markets have been strengthening this year, with foreigners funneling over $7.5 billion into Indian equities on expectations that interest rate cuts and the prospective re-election of Prime Minister Narendra Modi’s government will support earnings growth. The final votes will be tallied on May 23.
Sameer Kalra, president at Mumbai-based advisory Target Investing, warned that the surge in crude prices could weigh on markets at higher levels, adding that a better-than-expected earnings season could help stocks “to hold on to the valuations and keep the flow momentum.”
“At this juncture, one needs to be extremely stock specific by following a proper exit strategy,” Sameet Chavan, a technical analyst at Angel Broking Ltd., wrote in a note on Saturday.
Seven Biggest India ETFs By AUM (Assets Under Management)
| Symbol | ETF Name | Region | Total Assets ($MM) | YTD | Avg Volume | Previous Closing Price |
| INDA | iShares MSCI India ETF | Emerging Asia Pacific | $5,097.88 | 7.35% | 4,240,924 | $35.79 |
| EPI | WisdomTree India Earnings Fund | Emerging Asia Pacific | $1,360.15 | 7.26% | 1,751,944 | $26.48 |
| INDY | iShares India 50 ETF | Emerging Asia Pacific | $836 | 8.75% | 158,113 | $38.41 |
| SMIN | iShares MSCI India Small-Cap ETF | Emerging Asia Pacific | $283 | 5.11% | 75,460 | $40.54 |
| SCIF | VanEck Vectors India Small-Cap Index ETF | Emerging Asia Pacific | $191 | 3.02% | 43,137 | $43.68 |
| PIN | Invesco India ETF | Emerging Asia Pacific | $188 | 6.34% | 59,698 | $25.66 |
| INCO | Columbia India Consumer ETF | Emerging Asia Pacific | $134 | -2.74% | 13,849 | $42.99 |
* Assets and Average Volume as of 2019-04-18 20:14 UTC, via ETFdb.com
