Mumbai: The equity markets sign-ed off 2016 on a positive note with an annual gain of about three per cent, but disappointed investors who had bet big on equities anticipating a turnaround in domestic economic growth and recovery in corporate earnings growth.
On Friday, the broader 50-share Nifty ended the day at 8,185.80, gaining 82.20 points or 1.01 per cent while the Sensex closed the session at 26,626.46, up 260.31 points or 0.99 per cent.
“The year started on a subdued note, but the Union Budget gave a major boost to the market by announcing major measures to revive the rural economy and infrastructure. Additionally, a good monsoon after two consecutive years of deficient rainfall also raised hopes about a recovery in the domestic economy and corporate earnings growth. However, the demonetisations of high value notes towards the end of the year turned out to be a major disappointment as it derailed the much awaited recovery in growth,” said Ambareesh Baliga, senior research analyst.
Market participants added that the interest rate hike by the US Federal Reserve and the victory of Donald Trump in the US President election also turned out to be a major dampener for the entire emerging market equities. “Otherwise, our markets would have ended with around 10 per cent gain this year,” added Mr Baliga.
