Stock markets close 2016 at a record high as L&T soars and the Sensex rises 485 points.

The BSE Sensex and NSE Nifty continued their upward trajectory for the third consecutive day, marking a substantial 2 percent gain on Thursday. This surge was primarily driven by a robust performance in the capital goods sector, coinciding with the expiry of Futures and Options (F&O) contracts. The Sensex concluded the day with an impressive rise of 485.51 points, equivalent to 1.88 percent, reaching 26,366 points, while the Nifty index achieved a noteworthy milestone, settling at 8,069.65 points, a level unseen since November 2015, after gaining 134.75 points. Within the 50-share index, Larsen & Toubro took the lead with a remarkable surge of 13.89 percent, closing at Rs 1,471. Following closely were State Bank of India (up by 5.40 percent), BHEL (up by 5.06 percent), Axis Bank (up by 3.76 percent), and Idea Cellular (up by 3.33 percent). Conversely, Bharti Infratel, HCL Technologies, Eicher Motors, Bosch, and Reliance Industries experienced declines of 1.75 percent, 1.01 percent, 0.71 percent, 0.57 percent, and 0.41 percent, respectively. In terms of sectors, the BSE Capital Goods index demonstrated a substantial rally of 8.78 percent, while the BSE Bankex and BSE Realty index also saw impressive gains of 3.97 percent and 2.22 percent, respectively. Virtually all other sectoral indices concluded the day in positive territory.  

Vinod Nair, the head of research at Geojit BNP Paribas Financial Services, remarked, “Nifty has successfully breached the crucial 8,000-point mark, a level that had posed as a significant barrier for the past six months. Strong fourth-quarter earnings from heavyweight companies within the index provided the necessary impetus for this rally. On a global scale, the surge in oil prices due to a reduction in US crude inventories and signs of economic stabilization fueled market optimism. Global investors are keeping a close eye on the speech by the Federal Reserve Chair and US GDP data scheduled for Friday, which could have implications for the likelihood of a Fed interest rate hike.” In specific stock-related developments, Larsen & Toubro witnessed a surge in its share price following an impressive 19 percent increase in fourth-quarter profits. The company also expressed optimism about a 15 percent increase in orders for the fiscal year ending in March 2017. Bajaj Auto recorded a modest gain of 0.81 percent after reporting a 29 percent increase in net profit for the March quarter. On the flip side, Aditya Birla Fashion and Retail experienced a 6 percent decline in its share price as its losses for the March quarter widened to approximately Rs 110 crore. In the broader Asian equity markets, Thursday ended on a positive note, with gains in oil prices and positive signals from international markets outweighing concerns about a slowdown in Chinese economic growth and the possibility of higher interest rates in the United States. There was a sudden spike in the value of the yen ahead of the G7 summit talks, where the leaders of the world’s seven major industrial democracies were expected to promote monetary, fiscal, and structural policies to stimulate growth in their official statement when the summit concluded on Friday. Furthermore, Federal Reserve Chair Janet Yellen was scheduled to deliver remarks on the economy at Harvard on Friday, potentially offering additional insights into the likelihood of a June interest rate hike by the central bank.

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