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GCC investors will soon be able to trade in Indian equities via a new ETF: Chimera Investment’s Abu Dhabi-based alternative investment arm Lunate Capital is set to launch the GCC region’s first exchange-traded fund (ETF) for Indian stocks, Lunate said in a statement. The firm’s index — dubbed the Chimera S&P India Shariah ETF — will track the performance of Shariah-compliant equities listed on the Bombay Stock Exchange.
About the fund: The investment manager will list the fund on the ADX, offering the stock market’s investors “direct access to the world’s fifth-largest stock market and one of the fastest-growing economies globally,” Lunate said.
Timeframe: The subscription period kicks off this Friday and runs through to next Tuesday, 17 January, with trading expected to commence on 26 January for AED 3.67 per unit. The index will cover some of the biggest Shariah-compliant Indian stocks, including Reliance Industries, Infosys, and Tata Consultancy Services, Bloomberg reports.
Indian stocks are on the rise: Chimera Capital-backed Lunate is launching the fund on the back of S&P India Shariah Liquid 35/20 Capped Index ’s strong performance, according to Bloomberg. S&P’s AED-denominated index for Indian stocks — which was launched in 2022 — posted 16% growth last year. India’s National Stock Exchange’s (NSE) benchmark index, NIFTY 50, jumped 20% in 2023, outperforming the MSCI Asia Pacific Index, and is expected to keep up the growth momentum in 2024, Bloomberg reported separately.
The UAE is eyeing more investments in India: The government is planning to invest up to USD 50 bn in India, Bloomberg reported back in November. Abu Dhabi is looking to invest in India, its second-largest trading partner, on the basis of provisional investment pledges, expected to be inked early 2024.
ICYMI- Lunate will soon be transferred to Abu Dhabi’s USD 239 bn International Holding Company’s (IHC) 2PointZero, a holding company that will hold some AED 100 bn (USD 27 bn) of assets. Other companies to be folded into the new entity will include Chimera Investment, crypto mining player Citadel Technologies, Middle-East-focused Sagasse Investments, Egypt’s Beltone Financial Holding, as well as Abu Dhabi’s International Resources Holding.
