Shares turn rangebound; Nifty hovers above 11,250

Key equity indices continued to trade in a narrow range with modest losses in mid-afternoon trade. At 14:24 IST, the barometer index, the S&P BSE Sensex, was down 242.24 points or 0.63% at 38,123.11. The Nifty 50 index lost 61.60 points or 0.54% at 11,255.75.

The broader market was trading lower. The S&P BSE Mid-Cap index fell 0.74% while the S&P BSE Small-Cap index was declined 1.42%.

Sellers outpaced buyers. On the BSE, 668 shares rose and 1929 shares fell. A total of 135 shares were unchanged.

Buzzing Segments:

According to data from Association of Mutual Funds of India (AMFI), August marked the fifth straight month of fall in inflows in the equity mutual funds. Consequently, shares of two asset management companies tumbled in trade.

HDFC Asset Management Company fell 2.26% to Rs 2369.40 while Nippon Life India Asset Management slipped 2.25% to Rs 273.50.

Net outflows from equity mutual funds stood at Rs 3,999.62 crore, compared to outflows of Rs 2,480.35 crore in July. Almost all the equity fund mutual fund categories saw redemptions. Equity mutual funds saw a total inflow of Rs 14,558.20 crore and outflow of Rs 18,557.82 crore.

While the debt mutual fund schemes witnessed net outflow of Rs 3,907.53 crore, hybrid funds saw net ouflows of Rs 4,819.45 crore in August 2020.

The domestic life insurance industry continued to see growth in new business premiums (NBP) in August for the second straight month, according to data released by Insurance Regulatory and Development Authority (IRDAI). These companies had suffered four consecutive months of business contraction since the lockdown began late March.

The life insurance industry's total first year premiums have increased by 14.79% to Rs 27039.79 crore in August 2020 from Rs 23554.94 crore in August 2019. Life Insurance Corporation (LIC) of India's first year premiums have jumped by 15.19% to Rs 19714.21 crore in August 2020 from Rs 17114.32 crore in August 2019.

Bajaj Finserv lost 3.61% to Rs 6006.50. Bajaj Allianz Life Insurance Company's first year premiums decreased by 5.07% to Rs 355.88 crore in August 2020 from Rs 374.88 crore in August 2019.

HDFC Life Insurance Company added 0.85% to Rs 586.50. The company's first year premiums increased 44.74% to Rs 1903.96 crore in August 2020 from Rs 1315.42 crore in August 2019.

SBI Life Insurance Company declined 1.48% to Rs 832.25. The company's first year premiums jumped 26.07% to Rs 1805.77 crore in August 2020 from Rs 1432.40 crore in August 2019.

Max Financial Services rose 1.47% to Rs 591.65. The company's first year premiums rose by 19.35% to Rs 524.33 crore in August 2020 from Rs 439.34 crore in August 2019.

ICICI Prudential Life Insurance Company slipped 0.68% to Rs 439. The company's first year premiums declined by 14.50% to Rs 892.31 crore in August 2020 from Rs 1043.62 crore in August 2019.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged higher to 73.55 compared with its previous closing 73.60.

The yield on 10-year benchmark federal paper rose to 5.985% compared with previous closing of 6.056% in the previous trading session.

MCX Gold futures for 5 October 2020 settlement shed 0.41% to Rs 51,140.

In the commodities market, Brent crude for November 2020 settlement rose 56 cents to $40.34 a barrel. The contract fell 6.75% or $2.88 to settle at 39.78 in the previous trading sessions on Tuesday.

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