Sensex Ends 134 Points Lower; Metal And Telecom Stocks Witness Selling

Indian share markets witnessed selling pressure throughout the day and ended marginally lower. Sectoral indices ended on a mixed note with stocks in the healthcare sector and realty sector witnessing buying interest while metal stocks and telecom stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood lower by 134 points (down 0.4%) and the NSE Nifty closed down by 39 points (down 0.4%). The BSE Mid Cap index ended the day down by 0.1% while the BSE Small Cap index ended the day down by 0.5%.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 0.9% and the Shanghai Composite was down by 1.2%. The Nikkei 225 was down 0.5%.

The rupee was trading at 71.41 against the US$.

Note that while the markets are witnessing selling pressure lately, the SIP flows in to Indian stock markets are on the rise. Have a look at the chart below. It plots the month SIP contributions over the 31-month period between April 2016 and October 2018.

SIPs Continue to Rise Despite Market Correction

 

During the above period, SIP contributions have grown from Rs 3,122 crore in April 2016 to Rs 7,985 crore in October 2018, growing at compounded annual rate of 46%.

As per an article in The Economic Times, the share of equity investments in India's household assets has reached a decade high following rising acceptance of mutual fund investments among retail investors.

Here's an excerpt from the article:

  • Data from RBI, AMFI, IRDA and MOSPI, compiled by CLSA, show that equity's share in the country's household assets increased to 4.6% in FY18, the highest since FY08. It had dropped to 2.2% in 2014 and has been gradually improving since then.

Currently, there are about 2.49 crore SIP accounts through which investors regularly invest in various Indian mutual fund schemes. As per AMFI data, the mutual fund industry added an average of about 10.05 lakh SIP accounts each month during the financial year 2018-19, with an average SIP size of about Rs 3,200 per SIP account.

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