Sensex Trades Flat; Realty And Auto Stocks Gain

Share markets in India are presently trading on a flat note. Sectoral indices are trading mixed with stocks in the banking sector and energy sector witnessing selling pressure while auto stocksoil & gas stocks and realty stocks are witnessing buying interest.

The BSE Sensex is trading down by 40 points (down 0.1%), while the NSE Nifty is trading on a flat note. The BSE Mid Cap index is trading up by 0.4% and the BSE Small Cap index is trading up by 0.8%.

Speaking of Indian share markets, note that mutual fund investors who have been resilient in their investments till now are showing the first signs of panic.

Have a look at the chart below that shows the reducing mutual fund net inflows:

Reducing Mutual Fund Net Inflows - First Sign of Panic?

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...

  • Net mutual fund inflows (mutual fund inflows net of redemptions) for January 2019 was at Rs 61.6 billion. This is a 60% drop from net inflows of 153.9 billion in January 2018 of last year.

    Past bear market cycles were characterized by the exit of retail investors.

    Are we seeing the same thing again?

    It is important dear reader, to avoid the herd in times like these.

She believes, these are the times that differentiate the small number of investors who create long-term wealth for themselves by taking long-term positions in safe stocks.

From the currency space, the rupee is trading at Rs 71.19 against the US$.

The rupee inched up 2 paise to 71.22 against the dollar in early trade today amid a dip in crude oil prices and fresh foreign fund inflows. Yesterday, the rupee closed almost flat against the US dollar.

Global crude oil prices witnessed selling pressure on higher levels after the US reported its crude output hit a record 12 million barrels per day (bpd), undermining efforts by middle East-dominated producer club OPEC to withhold supply and tighten global markets.

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