(Bloomberg) -- Equity investors pulled the largest single-day amount in two years from the main U.S. exchange-traded fund focusing on India. That didn't stop traders from cutting bearish bets on the ETF to the lowest level since February 2015.
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.
To contact the reporter on this story: Srinivasan Sivabalan in London at ssivabalan@bloomberg.net.
To contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Ravil Shirodkar, Shikhar Balwani
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