Sensex Ends 161 Points Lower; Telecom And Metal Stocks Witness Selling

Indian share markets witnessed selling pressure throughout the day and ended lower, tracking weakness in global markets owing to coronavirus outbreak.

The BSE Sensex stood lower by 161 points, while the NSE Nifty closed down by 53 points.

The BSE Mid Cap index ended the day down by 0.6%, while the BSE Small Cap index ended down by 0.5%.

Sectoral indices ended on a mixed note with stocks in the telecom sector and metal sector witnessing most of the selling pressure, while IT stocks witnessed buying interest.

Asian stock markets tumbled further amid concerns over the coronavirus outbreak that has slowed production and weakened demand in China.

The death toll from China's coronavirus epidemic climbed to 1,868, while the total number of confirmed cases jumped to 72,436.

As of the most recent closing prices, the Hang Seng was down 1.5% while the Nikkei was down 1.4%.

The rupee was trading at 71.48 against the US$.

In news from financial markets space, SEBI Chairman Ajay Tyagi said that the markets regulator is actively looking at recategorization of midcap and smallcap stocks for the mutual funds. SEBI Chief had made a similar comment earlier this month.

To ensure uniformity, the market regulator in 2017 issued a list defining largecap, midcap and smallcap companies. The list is being prepared once in six months by industry body AMFI in consultation with SEBI and stock exchanges.

Besides, to help investors make accurate comparison of schemes, SEBI categorized and rationalized mutual funds schemes.

The whole process was completed by mutual fund houses by June 2018, in which some schemes were merged while a few others saw changes in fundamental attributes.

Active fund managers claim that the categorization had taken away their flexibility to invest, resulting in money flowing into a set of stocks, impacting mutual fund scheme performances.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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