Market bids adieu to 2016 on a positive note

AFTER A roller-coaster ride, India’s bellwether Sensex on Friday rose 263 points, or one per cent, in the last trading session of 2016, recovering from recent losses and ending a volatile year with gains amid fears of capital outflows and cash crunch in the domestic economy post-demonetisation.

More than half of the annual gain was on the last trading day. The Sensex has gained 509 points, or nearly two per cent, in 2016. From a 52-week low of 22,494.6 hit on February 29 this year, the barometer index has risen 4,131.8 points or 18.4 per cent. From a 52-week high of 29,077.3 hit on September 8, the index has fallen 2,450.8 points or 8.43 per cent. The Sensex is off 3,398.3 points, or 11.3 per cent, from a record high of 30,024.7 hit on March 4, 2015.

The Nifty gained three per cent in 2016. On Friday, the Nifty rose 82.20 points, or about one per cent, to 8,185.8. “But, 2016 was a better year for the markets and investors when compared to 2015. For 2015, the Sensex ended five per cent lower at 26,117.5 levels, while the Nifty 50 closed four per cent lower at 7,946.3 compared to their respective closing figures as on December 31, 2014,” said an analyst.

Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said: “The euphoria continued in the last trading day of the year, hoping for radical remarks in the PM’S speech. Additionally, expectations of tax sops in Budget, weakness of dollar and robust tax collection are adding to the positive sentiment.” The sentiment was further bolstered after finance minister Arun Jaitley said there has been a sharp jump in tax collections.