PSUBANK is ETF which was earlier known as PSUBNKBEES. It tracks Nifty PSU Bank Index.
Today, i.e. 06-05-2024 it was trading normally till 3.15pm when its price shot up from 725 to 850 levels in few mins with heavy volume. I have seen in past also about ETF prices increasing 15-20% in the last 10-15 mins.
For example, the prices of Infrabees were trading at 865 on 18th April 2024 and in last 10-15 mins, increased to 1000+ and then went back to 865-870 levels. For PSUBANK, I am 100% sure, price will come down to 725 levels tomorrow but wanted to ask why such things happened in ETFs? This is not the first or second time I am observing this.
Seems to me that there isn’t enough market making provided by the ETF and someone is gaming it? Ideally there should be market makers on both sides (buy and sell) just around the fair value of the ETF at any given point of time.