Share markets in India witnessed selling pressure during closing hours and ended their trading session on a negative note. Sectoral indices ended on a negative note with stocks in the metal sector and telecom sector witnessing most of the selling pressure.
At the closing bell, the BSE Sensex stood lower by 218 points (down 0.6%) and the NSE Nifty closed down by 73 points (down 0.7%). The BSE Mid Cap index ended the day down 0.7%, while the BSE Small Cap index ended the day down 0.4%.
The rupee was trading at 71.02 against the US$.
Asian stock markets finished on a mixed note. As of the most recent closing prices, the Hang Seng was up by 0.2% and the Shanghai Composite was down by 0.2%. The Nikkei 225 was up 0.6%.
Note that while the markets are witnessing selling pressure lately, the SIP flows in to Indian stock markets are on the rise. Have a look at the chart below. It plots the month SIP contributions over the 31-month period between April 2016 and October 2018.
During the above period, SIP contributions have grown from Rs 3,122 crore in April 2016 to Rs 7,985 crore in October 2018, growing at compounded annual rate of 46%.
Currently, there are about 2.49 crore SIP accounts through which investors regularly invest in various Indian mutual fund schemes. As per AMFI data, the mutual fund industry added an average of about 10.05 lakh SIP accounts each month during the financial year 2018-19, with an average SIP size of about Rs 3,200 per SIP account.
Here's what Ankit wrote about it in one of the recent editions of The 5 Minute WrapUp...
If the trend in SIP inflows remains steady, it will provide the much-needed buoyancy to the Indian markets which have been witnessing an exodus of foreign investors.
In the news from pharma space, Glenmark Pharmaceuticals share price was in focus today as the company said it has received final approval from the USFDA for Atovaquone which used for prevention and treatment of a type of pneumonia.
As per the filing, the company has been granted final approval by the United States Food and Drug Administration (USFDA) for Atovaquone Oral Suspension USP in the strength of 750 mg/5 mL.
Speaking of drug approvals, note that Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past three years, there has been a sharp pick-up in new drug approvals in FY17.
Even the total filings of abbreviated new drug applications (ANDAs) for generic drugs rose to 1,292 in FY17 from 852 in the previous year. Faster approvals expedite the commercialisation of product pipelines of domestic pharma companies spurring growth. At the same time, however, it has raised the intensity of competition resulting in pricing pressures. The price erosion has been further compounded by a consolidation among US distributors and the decline in the number of products going off-patent over the past few years.
In other words, acceleration in generic drug approvals is like a double-edged sword. The growth boost can be quickly offset by the ensuing pricing pressures.
Pharma companies that invest in creating a pipeline of complex generics or building competencies in alternative dosage forms are better equipped to tackle the changing dynamics in the US generics market.
In other news, Kwality share price was also in focus today. Shares of the company witnessed buying interest in early trade today even as the company said it could not finalise financial results within the stipulated period.
As per the company, the deferment of results is due to change of auditors caused by resignation of statutory auditors M/s MSKA & Associates Chartered Accountants. The board of directors of the company have filled the casual vacancy, by inducting B. Rattan & Associates, Chartered Accountants, who require a reasonable time for completion of audit works, the company said.
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