Underlying Asset Performance: The CPSE ETF's price is primarily derived from the performance of the basket of Central Public Sector Enterprises (CPSEs) it holds. Positive performance of these companies generally leads to an increase in the ETF's price, and vice versa.

Market Sentiment: Overall investor sentiment towards the Indian stock market and specifically towards public sector undertakings significantly influences the ETF's price. Positive market sentiment can drive demand and increase the price, while negative sentiment can lead to selling pressure and price decline.

Supply and Demand: The basic economic principle of supply and demand plays a role. Higher demand for CPSE ETF units relative to the available supply will push the price up, and increased supply with lower demand will cause the price to fall.

Government Policies: Government policies and regulations related to public sector companies, disinvestment plans, and sector-specific initiatives can impact the profitability and growth prospects of the underlying CPSEs, thereby affecting the ETF's price.

Global Economic Factors: Global economic conditions, such as international commodity prices (especially oil, as many CPSEs are in the energy sector), global market trends, and foreign investment flows, can indirectly affect the performance of CPSEs and consequently the ETF's price.

Dividend Yield: The dividend yield offered by the ETF, which is based on the dividends paid by the underlying CPSEs, can influence investor demand and affect the ETF's price. Higher dividend yields may attract more investors, increasing the price.

Expense Ratio: The ETF's expense ratio, which is the annual fee charged to manage the fund, can impact the overall returns and may indirectly affect the ETF's attractiveness to investors and its price.