Shopping for shares when the market declines to seize future potential is a long-followed technique of retail traders. As Indian equities corrected from their peaks, it was not simply home retail traders who lapped up shares on low cost.
South Korea’s small traders additionally adopted the playbook to scale up their India publicity by means of alternate traded funds.
The benchmark NSE Nifty 50 corrected almost 9% from its peak in late September, as considerations over valuation, a robust US greenback, weak company earnings and constant overseas fund outflows took a toll.
Abroad traders pulled out Rs 1.5 lakh crore from Indian shares within the final 32 classes.
The correction has led to dips in Korean ETFs that monitor Indian equities. The Samsung Kodex India Nifty 50 and the Mirae Asset Tiger India Nifty 50 have misplaced 3.4% since Sept. 27.
Korean retail traders considered the latest market declines as shopping for alternatives, with web purchases of 8.1 billion received or $5.8 million within the Samsung ETF and 11.5 billion received or $8.2 million within the Mirae ETF throughout the identical interval, in response to a report by the Korea Financial Day by day.