Sensex Ends 216 Points Higher; Banking And Finance 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 telecom sector and realty sector.

At the closing bell, the BSE Sensex stood higher by 216 points (up 0.6%) and the NSE Nifty closed higher by 40 points (up 0.4%). The BSE Mid Cap index closed down by 0.4%, while the BSE Small Cap index ended the day down by 0.3%.

Asian stock markets finished on a positive note as of the most recent closing prices. The Hang Seng stood down by 0.4% and the Nikkei was trading down by 1%.

European markets were trading on a mixed note. The FTSE 100 was trading flat. The DAX was trading down by 0.1%, while the CAC 40 was up by 0.2%.

The rupee was trading at 69.48 to the US$ at the time of writing.

Data available with NSE suggested that foreign portfolio investors (FPIs) bought Rs 24.7 billion worth of domestic stocks on Tuesday.

Domestic institutional investors (DIIs), on the other hand, were net sellers to the tune of Rs 9.9 billion.

Speaking of FII data, 2018 was a turbulent year for the Indian stock markets. Foreign investors dumped Indian equities worth Rs 33,014 crore and debt instruments worth Rs 47,795 crore. In fact, they have continued to be net sellers in Indian stocks even in 2019. So far in January 2019, they have sold equities worth Rs 2,675 crore.

Had it not been for the solid participation from domestic investors, the Indian markets would have witnessed a much steeper fall.

The chart below puts things in perspective.

The Rapid Growth of the Indian Mutual Fund Industry

 

Ankit Shah shares an interesting observation around the rapid growth of mutual fund (MF) Industry in India.

Here's what he wrote in one of the editions of The 5 Minute WrapUp...

  • Ten years ago, the total assets under management (AUM of the Indian mutual fund industry were Rs 4.13 trillion (1 trillion equals 1 lakh crore) as on 31 December 2008.

    Over the subsequent five years, the industry grew at a compound annual growth rate (CAGR) of 15% to take the total AUM to Rs 8.2 trillion as on 31 December 2013.

    Thereafter, the Indian mutual fund industry took off like never before, compounding at 23% CAGR, and taking the total AUM as on 31 December 2018 to Rs 22.86 trillion.

    In just 10 years, the AUM of the Indian MF Industry has multiplied 5.5 times, compounding at 19% CAGR.

    The total number of mutual fund folios as on 31 December 2018 stood at 8.03 crore (80.3 million).
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