5 ETFs Lose Over 10% in the Last Month: Motilal Oswal and Groww India Defence ETFs Lose 12%

The Indian ETF market has experienced significant turbulence over the past month, with equity-focused funds witnessing substantial losses. Market volatility, foreign institutional investor selling pressure, and US tariff policy concerns have created challenging conditions for equity ETFs, particularly in the IT sector.

Defence ETFs Lead Market Decline with 11.94% Losses

Motilal Oswal Nifty India Defence ETF emerged as the worst performer, recording a steep 11.94% loss with ₹586.6 crore AUM. Groww Nifty India Defence ETF mirrored this decline with an identical 11.94% loss, though with a smaller ₹209.1 crore asset base. 

IT Sector ETFs Face 10.24% Uniform Decline

3 IT-focused ETFs recorded identical 10.24% losses: UTI Nifty IT ETF with ₹6.3 crore AUM, SBI Nifty IT ETF with ₹100.9 crore assets, and Nippon India ETF Nifty IT despite its largest AUM of ₹2,447.9 crore. IT sector vulnerability stems from US tariff pressures and potential policy changes impacting Indian technology services exports.

Read More: NFO Alert: SBI and Baroda BNP Paribas Mutual Funds Launch New ETFs!

Sector Concentration Reflects Investor Sentiment Shifts

Loss of concentration in the defence and IT sectors demonstrates investor sentiment changes. Defence stocks face profit-booking after significant rallies from government spending initiatives and ‘Operation sindoor’. IT stocks grapple with dual pressures from potential US trade policy changes and global technology spending concerns amid ongoing trade tensions.

Conclusion

Top 5 ETF losers experiencing 10.24% to 11.94% declines highlight sector-specific investing volatility amid market stress. Defence and IT ETFs' substantial losses reflect broader challenges from FII selling, US tariff pressures, and geopolitical uncertainties. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.