This matters a lot as recent flows and outflows has been mostly from ETF's. If money is moving out of the then it will have sell off in India. Closing below 200 DMA is a bearish factor.
The Wisdom Tree Fund is $1.5bn+ fund and MSCI India is $1bn fund. More Info here.
Attached are the charts.
India has been under performing other emerging market indices specially China which is worrisome if this trend continues further.
Worth mentioning is the fact that the China has been underperforming due to Inflation (leading to rates increase) and similiar problem is now in India.
Other market having similar problems is Indonesia which is also one of the underperformer.
Marketwatch comments on Indian ETF's posted on 16th Jan
ReplyDeletehttp://www.marketwatch.com/story/india-etfs-dive-on-inflation-rate-jitters-2011-01-16?link=kiosk