Sensex Trades Rangebound; Metal & Healthcare Stocks Gain

Stock markets in India are presently trading on a flat note. The BSE Sensex is trading higher by 30 points and the NSE Nifty is trading higher by 10 points. Meanwhile, the BSE Mid Cap index and the BSE Small Cap index both are trading up by 0.6% & 0.5% respectively.

Among the sectoral indices, metal stocks and healthcare stocks are witnessing buying interest. While telecom stocks and energy stocks are trading in the red.

The rupee is trading at 69.86 to the US$.

There are some interesting trends about how the global markets performed last year and this year.

The BSE Sensex closed at 34,057 at the end of 2017. It gained 14% to hit a lifetime high of 38,897 on 28 August 2018. Thereafter, the Sensex has been in correction mode through September and October. However, after hitting a year-to-date low of 33,349 in the last week of October, the Sensex has reclaimed the 35k level.

While the Sensex has shed most of its gains in 2018, it still doesn't appear so bad in Indian rupee terms. But for foreign investors, the fall in the Sensex has been worse, because they're also exposed the currency risk.

The below chart shows the difference between the performance of the Sensex and the Dollex 30 index (Sensex in US dollar terms).

Dollex-30 Is Down 10% in 2018

You can see how the trend between the Sensex and Dollex-30 diverged since February 2018.

The Dollex-30 index has declined 10% in 2018 so far.

No wonder that foreign investors have been dumping Indian stocks. Since April 2018, foreign investors have sold equities worth Rs 565.5 billion. What is worth noting is that Rs 276.2 billion worth of equities were sold in the month of October alone.

Now, as the year 2018 draws to a close, in the latest edition of our stock market podcast, we talk about the investment strategy for 2019 and Richa Agarwal's 4 small cap stocks that we need to watch out for. Listen in to find out. Just visit SoundCloud, iTunes or Stitcher.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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