Market ends 2016 with a bang, Sensex up 2%, Nifty gains 3%
The market ended 2016 on a positive note as the Nifty and the Sensex gained 1 percent. Annually, the Nifty metal saw an uptick of 45 percent. For the week, FMCG stocks outperformed with 6 percent gains.For the day, the market struggled a lot but could not touch 8200. The 50-share index ended up 82.20 points or 1 percent at 8185.80 while the Sensex was up 260.31 points or 0.9 percent at 26626.46.
Both the Sensex and the Nifty edged higher to hit their highest level in over two weeks, in intra-day trade. Strong buying by domestic institutional investors (DIIs) sustained positive sentiment in the market.
For the whole year, the Sensex gained 2 percent while the Nifty was up 3 percent. Among indices, Nifty Bank climbed 8 percent, Metal was up 45 percent, FMCG was up 3 percent, while Auto was up 11 percent. Nifty IT was down 7 percent and pharma slipped 14 percent in the year.
Hindalco was up 83 percent, YES Bank was up 60 percent while Tata Steel was up 51 percent and BPCL gained 43 percent in 2016. Aurobindo slipped 24 percent, Sun Pharma was down 23 percent, Idea fell 49 percent and BHEL was down 29 percent in 2016
Investors will keenly watch government announcement post demonetisation deadline. Dilip Bhat, Joint MD, Prabhudas Lilladher expects some kind of a pre-Budge rally, which will largely pin its hopes on PM assuaging sentiments in terms of taxes.
Fiscal deficit data saw a decline for the month of November. At Rs 34500 crore it is less than half of what it was last year. The government also mopped up Rs 1.14 crore in November tax collections which is a significant jump compared annually.
Meanwhile, Finance minister Arun Jaitley will meet the deputy prime minister of Singapore in a short while from now. Amendment of the bilateral double taxation avoidance agreement might be on the anvil.
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