Indian Indices Trade Marginally Lower; Precious Metal Stocks Witness Selling

Share markets in India are presently trading marginally lower. Sectoral indices are trading on a mixed note with stocks in the metal sector and power sector witnessing maximum selling pressure.

The BSE Sensex is trading down by 104 points (down 0.3%), while the NSE Nifty is trading down by 27 points (down 0.2%). The BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading down by 0.3%.

The rupee is trading at 68.93 to the US$.

In the news from the finance sector, AU Small Finance Bank share price is witnessing buying interest today. Gains are seen amid reports that Warburg Pincus sold 5% stake in the company to a marquee investor in a block deal.

Warburg Pincus was required to bring down its stake in the company below 10% in line with RBI regulations.

At the time of writing, AU Small Finance Bank share price was trading up by 8.4% on the BSE.

In other news, as per a Federation of Independent Financial Advisors (FIFA) study of 25 countries, India’s equity mutual funds are the third least expensive in the developing world. As per them… “The three approaches – tracking superinvestor shareholdings, catching these moves early through bulk and block deal disclosures, and keeping tabs on changes in promoter holdings – have unveiled some critical smart money secrets…”

As per the data, India’s equity mutual fund expense ratio – the portion of assets mutual fund houses take back as a service charge – stands at 1.88%, the third after Norway’s 1.80% and Japan’s 1.87%.

The average total cost for equity funds before taxes across all countries was 2.15%. The UK was the most expensive at 2.83%.

India was the least expensive among developing nations where the mutual fund industry is at a nascent stage.

The above findings were based on March 2017 data and as per FIFA ownership expense in India would have reduced further as the local regulator has since mandated a reduction in the total expense ratio.


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