Markets on rebound path

A sense of optimism prevailed at the market as the sensex closed the day on a positive note with a again of 121 points on the final day of trading in 2009 and closed the year with a gain of 81 per cent which is the highest one year gain since 1993 to close the year at 17,464.8.

A sense of optimism prevailed at the market as the sensex closed the day on a positive note with a again of 121 points on the final day of trading in 2009 and closed the year with a gain of 81 per cent which is the highest one year gain since 1993 to close the year at 17,464.8.

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The broader Nifty lagged the sensex performance in the year 2009 as it closed the year at 5,201 with a gain of 75.7 per cent.

Even though the sensex returns of 81 per cent in the year look big in isolation, the MSCI BRIC (Brazil, China, India and Russia) has outperformed it with a return of 86.7 per cent. It has however outperformed the MSCI emerging markets index which rose by 72.9 per cent.

While market players say that the year 2010 to be not as rewarding for the investors as 2009 they are optimistic about a stable performance.

“The ongoing mood of the capital market will be buoyant if there is surprise in quarterly results which will start from January 12th onwards,” said Alex Mathews, head of research, Geojit Securities.

While the growth in the economy is expected to hover between 8.5 per cent and 9 per cent as projected by various economists, the sensex companies are expected to have decent revenue growth in the next fiscal.

“The sensex companies are expected to see an earnings growth between 15 per cent and 20 per cent in the next financial year,” said Sundeep Sikka, CEO, Reliance Mutual Fund.