After First Decline in 4 Years, Analysts Expect Sensex to Jump 30% in 2016

Sarla Buch
01 Jan, 2016
New York City

Sensex on the first day of trading in 2016 advanced cautiously and brokerage firms estimated sharp escalation in market indexes but in volatile fashion. Maruti Suzuki said December vehicle sales advanced 9%.

[R]6:00 PM Mumbai, India – Sensex on the first day of trading in 2016 advanced cautiously and brokerage firms estimated sharp escalation in market indexes but in volatile fashion. Maruti Suzuki said December vehicle sales advanced 9%.[/R]

Stocks in Mumbai traded higher on the first day of trading after the benchmark indexes declined for the first time in four years.

Sensex index declined nearly 4% in 2015 as the market indexes consolidated after registered first decline in four years.

Brokerage firms are holding out for the market indexes to advance as much as 30% in 2016 largely on the deepening investment infrastructure and widening tax reforms and the expected return of foreign investors.

Foreign institutional investors only added net $3 billion of positions in 2015, sharply lower from the previous years of annual inflow of $20 billion.

Foreign investors are likely to step up investments in India as Modi government pushes for more reforms and revv up the growth backdrop and the third year decline in energy prices are expected to provide support to the international trade balance.

Rupee strengthened 2 paisa to ₹66.13 against one U.S. dollar.

The Sensex Index edged up 43.36 or 0.2% to close at 26,160.90. The CNX Nifty rose 16.85 or 0.2% to 7,963.20.

For the week, Sensex Index increased 1.2% and for the month index edged down 0.1% and for the quarter index fell 0.3% and for the year index declined 4%.

For the week, CNX Nifty gained 1.2% and for the month index edged up 0.02% and for the quarter index added 0.03% and for the year index declined 3.9%.

Gainers & Losers

Corporation Bank Limited jumped 2.9% to ₹43.30 and the lender alloted 2.8 crore shares worth ₹143 crore to the Life Insurance Corporation.

Housing Development Finance Corporation Limited edged down 0.5% to ₹1,257.80 after the housing loan provider said in third-quarter sale of investments declined 59.6% from a year ago to ₹57 crore.

KEC International Limited increased 1.2% to ₹156.85 after the power and telephone cables maker won new orders worth ₹1,001 crore.

Maruti Suzuki India Limited rose 0.4% to ₹4,635.05 after the largest automobile maker said total sales in December advanced 8.5% from a year ago to 119,149 units.

Domestic sales jumped 13.5% to 111,133 units and export sales plunged 33.1% to 7,816 units.

Om Metals Infraprojects Limited soared 6.5% to ₹56.55 after the infrastructure developer secured Hydro Mechanical contract worth ₹106 crore from Uttarakhand Government.

Piramal Enterprises Limited edged up 0.5% to ₹1,009.25 after the pharmaceutical products maker plans to raise up to ₹500 crore through a debenture offering.