Stocks end 2016 with 3% gains; volatility, black swan events dominate
Fresh buying into front line shares and continued covering of short positions helped markets to end higher for the 4th…
Broader markets fell for the 7th session in a row on Thursday as across the board selling emerged after the benchmark fell below a crucial support level. The lack of positive cues from overseas markets and sheer absence of buying momentum also caused prices to slump.
As a consequence, the benchmark Nifty index closed below the crucial 8,000 point support level and its trail of losses extended to the 7th day. All sectoral indices and wider benchmarks posted losses. Indian stocks were also among the biggest losers across Asian and European equities.
The Nifty is precariously placed to lose all its gains for 2016 as it trades very close to December 2015 closing quotes.
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Here are the major trading events for today:
* Nifty sheds 82 points, or 1 percent, to 7,979 points on higher than average volume. Index hasn't had a positive day since December 13, when it closed at 8,221 points.
* The Fear Index, India ViX, surged 5.8% as bears gained more strength.
* Hindalco, Adani Ports, ONGC, Tata Steel and Bharti Airtel fell 2.7-4.3% and were among 43 decliners on the Nifty.
* Asian Paints, ITC, Tata Motors, Bharti Infratel and Eicher Motors rose 0.2-0.8% and were among the 8 shares that advanced on the Nifty.
* The Sensex dropped 263 points to 25,980 on the Bombay Stock Exchange. Tata Steel was the top loser while ITC was the top gainer.
* Heavyweights fell on volume. Reliance Industries, Infosys and Sun Pharma were the top traded shares by value and all three posted losses.
* Reliance Communications, Suzlon and DLF showed hectic volume activity.
* Falls in broader market indices — NSE 100,200 and 500 — exceeded 1 percent each.
* The mood was extremely downbeat in the wider market where 1,213 shares fell versus 242 that rose.
* Sentiment was worse off in the derivatives market where just 21 futures rose compared with 157 that fell.
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