Sensex Ends 146 Points Lower; IT And Power Stocks Drag

Indian share markets witnessed selling pressure during closing hours and ended their trading session marginally lower. Sectoral indices ended on a mixed note with realty stocksmetal stocks, and telecom stocks witnessed buying interest while IT stocks and power stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood lower by 146 points (down 0.4%) and the NSE Nifty closed down by 37 points (down 0.3%). The BSE Mid Cap index ended the day up 0.5% and the BSE Small Cap index ended the day up by 0.3%.

The rupee was trading at 71.46 against the US$.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was down 0.4% and the Shanghai Composite was up by 0.1%. The Nikkei 225 was up 0.1%.

Speaking of Indian share markets, it is interesting to note that more than 40 foreign pension funds (endowments and university and family foundations) registered with the Securities and Exchange Board of India in 2018.

Foreign Pension Funds are Making a Beeline for India

Here's what Tanushree Banerjee, Co-head of Research at Equitymaster, wrote about it on one of the recent editions of The 5 Minute WrapUp...

  • According to OECD, the 20 largest pension funds together hold about 43.2% of total global pension assets. Even if India were to receive 5% allocation, it will mean a boom for Indian stock markets.

    In last three years, there has been a consolidation as a result of stronger growth among the major players in the pension landscape. And these players are likely to concentrate more on geographies that offer stronger returns apart from relative safety, like India.

    However, the fact is that as a percentage of GDP, India's own pension fund assets are miniscule, even compared to that of other developing economies. And this could bring in a huge crisis in the decades ahead.

    About a quarter of the projected increase in the global population aged 15-64 years between 2010 and 2040 will occur in India. However, only 7.4% of India's working age population is covered under a pension program. That compares with 31% for Spain and 30% for Brazil, according to the World Economic Forum's report on Global Human Capital.
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