PSUBANK Leads Gains in ETFs, Silver ETFs Up by Over 10 Points; Gold ETFs Gain Steadily 

New Delhi, April 8: Exchange-traded funds (ETFs) trade higher on Wednesday in a broad-based rally with the top gainers taking the lead on the movement chart. PSUBANK ETF took the top spot by zooming 42.38 points to 868.24 as public sector bank stocks outperformed their peers.

SENSEXBEES followed closely by moving up 33.75 points. BANKBEES also had a strong day as it gained 29.55 points, with benchmark and banking linked ETFs observing a sharp rally. In contrast, ABGSEC ETF was the top loser on the movement chart, down 0.53 points, with government securities seeing mild selling pressure amid broad-based risk-on sentiment.

Bank-linked ETFs’ Interest 

Bank-linked ETFs witnessed strong buying interest on Wednesday, indicating a bullish bias in the banking sector. Popular ETFs like BANKBEES, SETFNIFBK, and BANKETF made significant moves higher, riding on renewed confidence and diminishing macro concerns. PSU banking ETFs such as PSUBANK and PSUBNKBEES saw active trading with strong inflows from institutions, outperforming other banks. The move in these ETFs points to the building conviction among investors towards cyclical sectors with the banking sector as a front runner.

Commodities-linked ETFs

ETFs linked to commodities, especially precious metals saw strong traction during the trading session. Gold ETFs, GOLDBEES, GOLDIETF, and AXISGOLD, witnessed steady gains on Wednesday tracking the positive move in domestic gold prices. Silver ETFs, however, stole the show with SILVERBEES, SILVERIETF, and HDFCSILVER each gaining over 10 points, making it the dominant sub-asset in the commodity ETF space, possibly on account of strong investor demand in silver as an industrial as well as a safe-haven asset.

Oil-Linked ETFs

Oil-linked ETFs OILIETF too edged up marginally in line with the recovery in global crude prices. Geopolitical concerns over Iran once again took the centre stage with the situation between the United States and Iran on its toes as before.

Conflict in Middle East

As of Wednesday, the Iran conflict had continued to result in intermittent bouts of volatility in global markets as tensions in the Middle East show little sign of dissipating, especially in the energy sector. The risk of further supply disruptions is very much alive with any aggressive action against Iran unlikely to be tolerated by Iranian leadership. Investor focus now will also be on European policymakers this week, with ECB meetings lined up.

Gold Prices

The Indian gold market witnessed a massive climb on Wednesday, as rates skyrocketed to reclaim levels not seen in weeks. Today’s gold price in India stands at ₹15,382 per gram for 24 karat gold, a sharp increase of ₹398 from the previous close. The 22 karat gold variant surged by ₹365 to settle at ₹14,100 per gram, while 18 karat gold followed the bullish trend, rising by ₹299 to reach ₹11,537 per gram.

Source: https://www.bseindia.com/markets/etf/ETF_MktWatch.aspx