Sensex Ends 142 Points Higher; Metal And Healthcare Stocks Witness Buying

Indian share markets continued their momentum during closing hours and ended the day on a positive note. Gains were largely seen in the metal sector and healthcare sector.

At the closing bell, the BSE Sensex stood higher by 142 points (up 0.4%) and the NSE Nifty closed higher by 54 points (up 0.5%). The BSE Mid Cap index closed up by 0.8%, while the BSE Small Cap index ended the day up by 1.1%.

Asian stock markets finished on a positive note as of the most recent closing prices. The Hang Seng stood up by 0.4% and the Nikkei was trading up by 0.2%.

European markets were trading on a mixed note. The FTSE 100 was down by 0.7%. The DAX was trading up by 0.04%, while the CAC 40 was down by 0.2%.

The rupee was trading at 71.12 to the US$ at the time of writing.

Going by the volatility seen in Indian share markets lately, are we seeing the first signs of panic in the Indian stock market?

Mutual fund investors who have been resilient in their investments till now are showing the first signs of panic.

As can be seen in the chart below, net mutual fund inflows (mutual fund inflows net of redemptions) for January 2019 was at Rs 61.6 billion. This is a 60% drop from net inflows of 153.9 billion in January 2018 of last year.

Reducing Mutual Fund Net Inflows - First Sign of Panic?

Past bear market cycles were characterized by the exit of retail investors.

Are we seeing the same thing again?

Here's what Tanushree Banerjee wrote about this in today's edition of The 5 Minute WrapUp...

  • It is important dear reader, to avoid the herd in times like these.

    These are the times that differentiate the small number of investors who create long-term wealth for themselves by taking long-term positions in safe stocks.

    You should also hold on to the safe stocks you already own and avoid panic selling.

    This will go a long way in your wealth building journey.
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