Sensex Ends 205 Points Lower; Power And Realty Stocks Witness Selling

India share markets continued to witness selling pressure during closing hours and ended their day on a negative note.

At the closing bell, the BSE Sensex stood lower by 205 points (down 0.5%) and the NSE Nifty stood down by 54 points (down 0.5%).

The BSE Mid Cap index ended the day down 0.2%, while the BSE Small Cap index stood flat.

Stocks in the power sector and realty sector witnessed huge selling pressure, while telecom stocks were trading in the green.

The rupee was trading at 71.16 against the US$.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 2.81% and the Shanghai Composite was down by 1.41%. The Nikkei 225 was down 0.91%.

European markets were also trading on a negative note. The FTSE 100 was down by 1.25%. The DAX was trading down by 0.46%, while the CAC 40 stood down 1.11%.

Speaking of the Indian economy and Indian share markets, Ankit wrote to you about a recent upcoming IPO. It's a company profiting from two megatrends - digitization and financialization - in the Indian economy.

ave a look at the chart below. A quick comparison of assets under management (AUM) of mutual funds in India versus abroad will give you a clear idea of the huge megatrend.

Mutual Funds: Megatrend of the decade?

 

India's mutual fund AUM as a percentage of GDP is 11%. This is far lower than the world average of 55%.

Here's what Tanushree Banerjee wrote about it in a recent edition of The 5 Minute WrapUp...

  • I strongly believe, the next decade could be the decade of financialisation in India.

    Traditionally, Indian households have preferred to invest in physical assets like real estate but things are changing.

    Indians now are more open to investing in financial assets like mutual funds. Better awareness, financial education, increasing urbanisation are all driving this change.

    Mutual fund AUM grew 24% annually in the last 5 years. I expect India's GDP to grow at 6-7% over the next decade.
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