Sensex closes on a high, ends trading for 2017
Posted on: 30/Dec/2017 1:13:48 PM
Yesterday was the last day of trading at Dalal Street. Bulls celebrated post SEBI reforms, as the Sensex ended at record closing high.
SEBI announced that it will allow exchanges to provide equity and commodity trading from next year; and to relax the entry norms for foreign portfolio investor’s boosted sentiment. Auto (up 1.28 percent) and IT (1.47 percent) were biggest gainers among sectoral indices while Metal, which was the second top gainer in 2017, lost half a percent today. The 30-share BSE Sensex rose 208.80 points to 34,056.83 and the 50-share NSE Nifty rallied 52.80 points to 10,530.70 today.
During 2017, the Sensex spiked 28 percent and the Nifty surged 29 percent, driven by liquidity, government reforms, positive global cues, state elections results and hopes of earnings growth.
Say experts, we’re hopeful that this momentum will extend further, with the earning expectations turning into reality. We advise participants to focus on themes now as we`re seeing rotational buying across the board. We expect markets to do well as the corporate earnings improve going forward as the market moves ahead in the year but given the spectacular returns in 2017, one should temper expectations for 2018. Though 2018 is being ushered-in amidst few macro concerns like rising crude oil prices, inching inflation along with an increase in the government borrowing programme leading to some slippages on fiscal consolidation path; we feel that these developments would be short-lived.
The broader markets outperformed frontline indices for the day as well as for the year. The Nifty Midcap gained 0.7 percent today; and shot up 47 percent in 2017, outperforming all global indices.
It was great year not only for equity but also for commodities. Brent crude, US crude and natural gas prices gained 12-20 percent during the year. Among metals, zinc, lead, nickel, copper, steel and aluminium prices rallied 20-36 percent while precious metals like gold prices added 13 percent, silver 5.5 percent and palladium 57 percent.
Auto stocks Tata Motors, Eicher Motors, Maruti Suzuki, Hero MotoCorp and Bajaj Auto gained 1-3 percent ahead of December sales data due on first day of 2018.
TCS, Axis Bank, HDFC, Infosys, Adani Ports, Bharti Infratel, HUL, Wipro and ONGC among others were up 1-3 percent whereas oil retailers HPCL, BPCL and IOC lost another 1-2 percent as Brent crude still traded above USD 66 a barrel.
