Nvidia’s recent troubles, worsened by the controversy surrounding CEO Jensen Huang, are not expected to remain confined to Wall Street. They might also affect Indian investors owning US tech stocks via local exchange-traded funds, many of whom overpaid for those stocks.
The Mirae Asset NYSE FANG+ ETF, featuring Nvidia among its 10 stocks, ended at Rs 234.91 on the NSE on Monday. As of November 6, AMFI data shows that its net asset value, or the true value of the shares it possesses, stood at Rs 155.18. That places the premium at roughly 51 percent. In simple terms, each Rs 100 invested in the ETF on Monday acquired approximately Rs 66 in US stocks.
The NYSE FANG+ index assigns equal weight to each of its 10 components, as stated by index provider ICE. Nvidia is positioned with Meta, Apple, Amazon, Netflix, Microsoft, Alphabet, Micron, Palantir, and Broadcom. Mirae Asset’s ETF, which it manages, recorded Rs 4,447.65 crore in the latest monthly tally. The Motilal Oswal Nasdaq 100 ETF is more closely linked to the chip manufacturer.
As of September 30, the fund house reported that Nvidia was its largest holding at 8.36 percent, followed by Apple at 7.38 percent. The ETF finished Monday at Rs 298.59, with an NAV of Rs 247.64, reflecting a premium of approximately 21 percent. According to AMFI’s scheme list, funds tracking the Nasdaq 100 managed by Motilal Oswal, ICICI Prudential, Navi, and Axis also provide Indian investors with indirect exposure.
For holders of Indian ETFs, the complete impact might be revealed at a later time. Indian markets finish trading before New York opens; meaning Nvidia’s actions in US trading will impact the funds’ upcoming published NAV. Nvidia is central to the AI investment surge and has progressively depended on its balance sheet and credit capabilities to facilitate quicker infrastructure expenditures.
Experts believe that Huang’s scandal alone does not provide a strong enough rationale for investing in India; however, if the controversy raises concerns about the AI market and encourages investors to broaden their portfolios, Indian equities might gain an unexpected edge due to the absence of a massive, costly AI industry in the country.
