Equity benchmarks ended last day of the year 2015 on a positive note despite tepid global cues amid thin volumes. After seeing consolidation, the market gained strength in late trade, supported by HDFC, Infosys, HDFC Bank and Reliance Industries.
The 30-share BSE Sensex climbed 157.51 points or 0.61 percent to 26117.54 and the 50-share NSE Nifty advanced 50.10 points or 0.63 percent to 7946.35. The broader markets also gained momentum; the BSE Midcap and Smallcap rose 0.4-0.5 percent.
However, the market’s performance in entire 2015 was pathetic, losing 5 percent on the Sensex and over 4 percent on the Nifty but the broader markets outperformed with the CNX Midcap rising over 6 percent. Lack of reforms, government’s failure to get GST Bill passed in parliament sessions, outflow of funds, weak corporate earnings, China woes etc caused nervousness during the year.
This negative momentum may not be sustainable in 2016, feel analysts, who expect good performance not only in benchmarks but also in midcaps on the back of strong inflow of FIIs money next year.
“Prospects favour India on hopes of FII inflows returning in 2016, an inspiring Budget and corporate earnings reviving with gradual improvement in consumption,” says Vinod Nair of Geojit BNP Paribas Financial Services.
Nilesh Shah of Kotak Mahindra Asset Management believes 2016 will be a more stock-specific year rather than a sector-specific one. He is bullish on urban consumption on the back of the benefits that will accrue due to the implementation of 7th Pay Commission.
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Wipro was up 1 percent. Media reports suggested that the IT services provider is likely to take full control of US-based cloud services provider Drivestream.
Dr Reddy’s Labs has received tentative approval from USFDA for anti-muscarinic drug Fesoterodine Fumarate. The stock gained in morning trade but could not sustain, down 0.6 percent at close.
Housing finance company HDFC was the leading contributor to Sensex’s gains today, rising 2.4 percent followed by Bharti Airtel, Coal India and GAIL with 2 percent upside. Infosys and Sun Pharma gained more than 1 percent.
ICICI Bank, Axis Bank, L&T, Tata Motors, Lupin, SBI and Hero Motocorp were down half a percent to one percent.
In broader space, Cadila Healthcare crashed 15 percent on getting warning letter from the USFDA for its two Gujarat facilities while Orchid Pharma gained 10 percent on establishment inspection report from the US Food and Drug Administration for formulation manufacturing facility in Tamil Nadu.
Petronet LNG spiked 3 percent as the state-run liquefied natural gas importer entered into a binding sell and purchase agreement with RasGas of Qatar for supply of additional 1 MTA of LNG to India starting 2016.
Aviation stocks also saw buying interest due to further fall in crude oil prices. SpiceJet and InterGlobe Aviation gained 3.5 percent.
Jet Airways surged 7 percent as the stock will be available for trading in NSE F&O segment from January 1. Total four stocks will be included in F&O segment. Other three were Container Corporation (up 2 percent), Godrej Consumer Products (up 3 percent) and Torrent Pharma (down 0.5 percent).
Meanwhile, the rupee closed higher today, rising 24 paise to 66.15 a dollar compared to 66.39 a dollar in previous session.
On the global front, European shares were lower ahead of a shortened trading session on the last day of 2015. UK’s FTSE and French CAC were down 0.3 percent.