Indian Indices Recover; Sensex Ends 77 Points Higher

Indian share markets witnessed buying interest during closing hours and ended on a positive note. Gains were seen in the metal sector, capital goods sector and power sector, while FMCG stocks and IT stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 77 points (up 0.2%) and the NSE Nifty closed higher by 20 points (up 0.2%). The BSE Mid Cap index ended the day up 0.2% and the BSE Small Cap index ended the day up by 0.5%.

Speaking of benchmark indices, if we check how the BSE-Sensex performed compared to BSE-Midcap and BSE Smallcap during downturns, we get this result.

Large-Cap Index Outperformed in the Downturn

The starting point of this exercise was the economic downturn of 2008.

During this time, the BSE-Sensex was down 38% compared to -54% and -59% of BSE-Mid and BSE-Small index respectively.

FY16 was an exception where the large-cap index underperformed. Similarly, during the period of 'policy paralysis' of 2011-12, the large-cap index outperformed both the indices.

Nevertheless, during the current calendar year, the BSE-Sensex outperformed by a wide margin and is currently giving a positive return of 6% compared to -17% and -27% of BSE-Mid and BSE-Small indices respectively.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 1% and the Shanghai Composite was down by 0.8%. The Nikkei 225 was down 1.8%.

The rupee was trading at 70.76 against the US$.

The Indian rupee extended its morning gains as it gained past 71 mark, trading higher by 56 paise versus Monday's close of 71.55.

The recovery came on the back of forex market sentiments driven by the country's narrowing trade deficit in November as also smart gains in domestic equities.

In the news from the media sector, Zee Entertainment share price was witnessing selling pressure today after global research firm Bank of America Merrill Lynch downgraded the stock to underperform with a target price at Rs 375.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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