After skyrocketing on May 20, Indian indexes shed some mass on May 21. The benchmark BSE Sensex dropped 383 points (0.97%) to end the day at 38,969.80. On May 20, the index gained 1,422 points (3.75%). The NIFTY 50 lost 1.01% to end the day at 11,709.10.
The counting of votes for the national election is scheduled for May 23. The indexes may be volatile until then.
India-focused ETFs gain big
As we expected, India-focused ETFs had a field day on the NYSE Arca yesterday. The WisdomTree India Earnings ETF (EPI) gained 4.69% on May 20. The iShares India 50 ETF (INDY), which tracks the NIFTY 50, gained 4.43%, while the iShares MSCI India ETF (INDA) gained 4.42%. With Indian indexes retreating, we expect marginal losses in these ETFs on account of profit-booking.
Other markets and ETFs
Taiwan’s TSEC Weighted Index saw a 0.64% gain today. On May 20, the iShares MSCI Taiwan ETF (EWT) lost 0.72%. With TSEC rising and S&P Futures up, expect moderate gains in the ETF today.
The Asia-focused iShares MSCI Asia 50 ETF (AIA) fell 0.88% yesterday.
Indonesia’s Jakarta Composite Index continued to rise on May 21. The index gained 0.75% on the day compared to its gain of 1.38% on May 20. Indonesia’s Election Commission’s official count showed that the incumbent, Joko Widodo, had retained leadership with 55.5% of the vote. The iShares MSCI Indonesia ETF (EIDO) gained 1.57% on May 20, as we expected.
Thailand’s SET Composite Index gained 0.15% on May 21.