The Nifty and the Sensex opened the day on a positive note, hitting fresh highs as investors remained buoyed by the economic recovery.
Join us as we follow the top business news through the day.
SIP inflows hit 31-month low at ₹7,302 crore in November
Investment in mutual funds through systematic investment plans dropped to a 31-month low of ₹7,302 crore in November amid a challenging economic environment.
However, investment through Systematic Investment Plans (SIPs) had risen in October after six months of continuous decline.
The 44-player mutual fund industry witnessed an inflow to the tune of ₹7,302 crore through SIPs in November compared with ₹7,800 crore in the preceding month, data from the Association of Mutual Funds in India showed. This was the lowest since April 2018, when investments via SIP clocked ₹6,690 crore.
Net addition of SIP accounts stood at 3.39 lakh in November. Fund collection through SIP was ₹7,788 crore in September and ₹7,791 crore in August.
It had dropped below the ₹8,000 crore-mark in June to ₹7,917 crore. Marketmen said SIP investments had fallen because investors wanted to maintain some liquidity as the situation was uncertain when it came to their jobs and businesses.
Shares hit record highs on Mahindra and Mahindra boost
Another fresh high for stocks.
Reuters reports: “Indian shares scaled record highs on Wednesday after ending flat in the previous session, powered by gains in automaker Mahindra and Mahindra and optimism over the roll-out of COVID-19 vaccines.
The blue-chip NSE Nifty 50 index rose 0.65% to 13,655.40 by 0348 GMT and the benchmark S&P BSE Sensex firmed 0.68% to 46,577.04. Including Wednesday, both the indexes have now hit record highs in 17 of 25 sessions.
The country’s equities have posted six straight weekly gains, boosted by record inflows from foreign institutional investors, progress on COVID-19 vaccines globally, and signs of a nascent economic recovery in the country.
Ratings agency Standard and Poor’s on Tuesday projected India’s real gross domestic product for the current fiscal year to shrink 7.7%, compared with the 9% contraction it expected earlier.
Automaker Mahindra and Mahindra rose 2.5% on Wednesday and was the top percentage gainer on the Nifty 50.
The company said on Tuesday it would increase the price of its passenger and commercial vehicle models from January.
Broader Asian markets were also higher, with MSCI’s broadest index of Asia Pacific shares outside of Japan rising 0.6%.”
Govt. must unveil stimulus to spur demand: MPs’ panel
The Parliamentary Standing Committee on Industry has asked the government to announce a stimulus package focused on generating demand, stressing that its responses so far have focused only on the supply side.
The panel has also asked for GST rates levied on automobiles to be rationalised from the present 28% tax rate with an additional compensation cess ranging from 1-22%, to 18%, to spur demand for new vehicles and help the sector overcome the present slump.
In its report on ‘Downturn in Automobile Sector – Its Impact and Measures for Revival’ submitted on Tuesday, the committee headed by Rajya Sabha MP K. Keshava Rao, pointed out that the cost of BS-VI vehicles was expected to be 10-15% higher due to upgraded technology, which could be mitigated by reducing the GST rate to 18% from 28%.