Asia-Pacific Update: Indian Indices Remain in the Red



Late selling

The S&P BSE Sensex and the NSE NIFTY 50 fell on May 7, which extended the performance on May 6. The SENSEX fell by 323 points or 0.84% to 38,277, while the NIFTY fell 0.87% below the support level of 11,500 to 11,497.

The banking, financial services, chemicals, industrials, and automotive sectors dragged both the indices down, while consumer durables and non-durables posted gains.

Even the mid-cap and small-cap stocks posted losses.

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Key ETFs

With Indian markets continuing to stay in the red, India-focused ETFs will likely remain under pressure.

The iShares India 50 ETF (INDY) tracks the NIFTY. INDY lost 1.2% on May 6 compared to NIFTY’s 0.97%. With the banking sector still under pressure, the banking-heavy ETF might see red again. The WisdomTree India Earnings Fund (EPI) and the iShares MSCI India ETF (INDA) will likely remain under pressure.

Other Asia-focused ETFs

With most Asian markets in the green, you can expect a recovery in the iShares Asia 50 ETF (AIA), which lost 2.2% on May 6. The Japan-heavy Vanguard FTSE Pacific ETF (VPL) is expected to see gains. The losses in the Japan portion of the portfolio seem to have already been factored in.

News from Europe

At 7:00 AM EST, the British FTSE 100 fell by one percent. The German DAX has fallen 0.5%, while the French CAC has fallen by 57 basis points.


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