Share markets in India are presently trading on a flat note. Sectoral indices are trading mixed with stocks in the capital goods sector and telecom sector witnessing buying interest while IT stocks and consumer durable stocks are witnessing selling pressure.

The BSE Sensex is trading down by 6 points, while the NSE Nifty is trading down by 11 points. The BSE Mid Cap index is trading up by 0.1% and the BSE Small Cap index is trading up by 0.2%.

The rupee is trading at Rs 70.05 against the US$.

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.

In the news from the finance space, DHFL share price is witnessing selling pressure today on reports that Care ratings has revised some of the company's long-term ratings.

According to the rating agency, the revision takes into account moderation in financial flexibility due to limited progress of strategic measures and inflows.

Here's an excerpt from the article:

• Though current cash and liquid investments are sufficient to bridge the negative mismatches for next two to three months, any acceleration of debt obligations by lenders and/or any higher than the anticipated withdrawal of deposits may put further stress on the liquidity profile of the company.

Reportedly, in response to the revision in ratings, Kapil Wadhawan, Chairman and Managing Director of DHFL, said in a press release that the company is committed to fulfil its financial responsibilities and termed the rating as an irrational decision.

The revision in ratings came after the company's shares surged nearly 20% yesterday, following an auditor's report which dismissed media allegations that DHFL created shell companies to divert funds, but said the firm's monitoring of loans was inadequate.

The auditor report suggested there are no indications to confirm the allegations that the company has created shell companies to divert funds.

That said, DHFL is required to monitor post disbursal end use of funds by the borrowers. The report indicated the monitoring in respect of 15 borrowers with loans amounting to Rs 74.9 billion is significantly inadequate.

Last month, shares of the company witnessed selling pressure as, Cobrapost said that DHFL diverted funds to shell companies to buy assets and that firms linked to DHFL's controlling shareholders - the Wadhawan group made political donations beyond mandated levels.

Cobrapost had sought responses to 64 allegations, which were leveled upon the promoters, DHFL and various entities alleged to be controlled by the promoter group. The auditor said since 25 of the 64 questions did not relate to allegations against DHFL and they were not examined or addressed by it.

Last week, rating agency ICRA downgraded the company's commercial papers (CPs) worth Rs 80 billion to 'A2+' from 'A1+'.

However, the company said that the rating action by ICRA is not merit based and it has not taken cognizance of DHFL's intent to extinguish CPs by the end of March.

DHFL share price is presently trading down by 3%.

To know more about the company, you can read DHFL's Q3FY19 Result Analysis on our website.

Moving on to the news from the engineering sector, L&T share price is witnessing buying interest today after the company's construction arm has secured orders from prestigious clients across varied states in India.

Reports state that the company's buildings and factories business has secured a prestigious order for the construction of campus development of IIT Hyderabad Package 3A at Kandi, Telangana.

Recently, the company's construction arm bagged contract for metro rail project Phase - 2 from Bangalore Metro Rail Corporation.

Shares of the company are trading 3% higher.

In other news, Astral Poly Technick share price hit a new high after shareholders approved a scheme to amalgamate Rex Polyextrusion which manufactures and supplies corrugated and other plastic piping solutions.

Shares of the company gained around 6% on back of the above news.

Reportedly, Astral Poly Technick was the first company to launch CPVC pipes in India in the mid-90s when the piping segment was dominated by galvanized iron (GI) and polyvinyl chlorinated (PVC) pipes.