BlackRock’s India ETF Sees $220 M Daily Outflow, $2 B Withdrawn in 5 Weeks
BlackRock’s $6.4 billion iShares MSCI India ETF recorded over $220 million in outflows on April 6, marking its largest daily redemption since April 2025 and exceeding $2 billion in withdrawals over five weeks. Heightened concerns over Iran’s effective shutdown of the Strait of Hormuz and India’s 90% crude and 50% LPG import reliance sent the Nifty 50 down 11% in March and weakened the rupee 4%.
1. ETF Outflows Surge
BlackRock’s flagship iShares MSCI India ETF saw $220 million in redemptions on April 6, the largest single‐day outflow since April 2025. Total withdrawals have now topped $2 billion over a five‐week stretch, reducing fund assets from $8.4 billion to $6.4 billion in that period.
2. Energy-Supply Concerns Drive Redemptions
Investors cited the conflict-driven closure of the Strait of Hormuz, through which about half of India’s crude and over 75% of its liquefied petroleum gas transit. With India importing roughly 90% of its crude and 50% of its LPG, elevated oil prices and supply disruptions fueled the selloff.
3. Indian Market Volatility
The NSE Nifty 50 index plunged over 11% in March, nearing levels last seen after the U.S. tariff rollout, while the rupee slid more than 4% against the dollar. UBS downgraded Indian equities to neutral, highlighting high valuations, AI disruption risk and currency weakness as additional headwinds.