Markit data on the iShares MSCI India ETF shows a section of the market remains bullish on equities even as Asia’s third-biggest economy grows at the slowest pace since 2014 and valuations hover near a nine-year high. Traders have extinguished about $130 million of bearish bets on the $5.2 billion fund since March, data compiled by Bloomberg show.
Investors pulled $68 million from the fund on Aug. 31 as escalating tensions between North Korea and the U.S. sparked a risk-off tone. The S&P BSE Sensex Index has risen 19 percent this year and trades at 18.6 times projected earnings. India’s gross domestic product rose 5.7 percent in April-June from a year earlier, missing economists’ estimates.
This article was provided by Bloomberg News.