Sensex Ends 54 Points Lower; Metal And IT Stocks Witness Selling

Share markets in India continued to trade in the red during closing hours and ended their trading session marginally lower. Sectoral indices ended on a mixed note with stocks in the IT sector and metal sector witnessing most of the selling pressure.

At the closing bell, the BSE Sensex stood lower by 54 points (down 0.2%) and the NSE Nifty closed down by 23 points (down 0.2%). The BSE Mid Cap index and the BSE Small Cap index ended the day down by 0.1%.

The rupee was trading at 69.92 against the US$.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 1.9% and the Shanghai Composite was down by 4.4%. The Nikkei 225 was down 2%.

Speaking of Indian share markets in general, the current scenario in the Indian stock market looks very similar to what happened in 2013.

Back then, mid and small cap stocks witnessed a similar correction while the BSE Sensex stayed put.

2018-19 has also followed a similar pattern.

Is It 2013 All Over Again?

Long term capital gains tax was introduced in last year's budget. We've seen corporate governance issues leading to auditor exits and finally the IL&FS impact.

The rally that followed in 2013 was led by mid and small caps.

Will 2019 pan out the same way?

As per research analyst, Sarvajeet Bodas, all you can do is control what can be controlled.

Pick up fundamentally strong stocks with able management at the helm.

These are businesses that have delivered earnings even in tough times.

These stocks are most likely to lead the next leg of the market rally when it happens.

Moving on to other news, as per a leading financial daily, equity inflows, including equity-linked savings scheme (ELSS) fell 16.8% to Rs 51.2 billion in February 2019 against Rs 61.5 billion reported in January 2019.

ELSS flow into equity (without arbitrage) declined 5.6% to Rs 11.7 billion on a month-on-month (MoM) basis.

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