The Sensex surged by 260 points and Nifty jumped to 8,186 in the last trading session of 2016, closing the year with gains despite recent volatility and economic concerns. The BSE index advanced 2% and the NSE index gained 3% in 2016 after recovering from losses in 2015, with positive sentiment driven by GST approval and anticipated RBI rate cuts. Despite some December losses, optimism remains for the upcoming budget and overall market outlook.

1. Sensex surges 260 points, Nifty jumps to 8,186
MUMBAI, DEC 30:
The Sensex and Nifty jumped 1 per cent in the last trading session of 2016,
recovering from recent losses and ending a volatile year with gains despite
fears of outflows from emerging markets and cash crunch in the domestic economy
post-demonetisation.
The broader NSE index gained 3 per cent in calendar 2016, while the benchmark
BSE index advanced 2 per cent, recovering from losses in 2015.
On Friday, the NSE index rose 82.2 points or 1.01 per cent to 8,185.80, while
the BSE index gained 260.31 points or 0.99 per cent to 26,626.46.
Both indexes advanced more than 2 per cent over the week, but posted modest
losses for December.
Among BSE sectoral indices, FMCG index gained the most by 1.67 per cent,
followed by power 1.3 per cent, healthcare 1.11 per cent and realty 1.1 per
cent.
Top five Sensex gainers were GAIL (+3.07%), Sun Pharma (+2.59%), ITC (+2.31%),
Power Grid (+2.14%) and Infosys (+1.67%), while the major losers were Bajaj Auto
(-0.81%), Dr Reddy's (-0.46%), Tata Steel (-0.34%), HDFC Bank (-0.12%) and ONGC
(-0.05%).
Volatile year
2016 was marked by volatility from global events, including Britain's vote in
June to exit the European Union and the US election victory of Donald Trump in
November. This year's gains would mark a recovery from a decline recorded in
2015.
At home, the approval for the Goods and Services Tax Bill earlier this year
helped boost sentiment, but that was offset later by the government's move to
scrap higher-denomination notes, raising concerns about economic growth.
But analysts sounded optimism for the new year, with the Reserve Bank of India
expected to cut rates at its next policy review in early February and the
government gearing up to issue the annual budget.
Markets remain in comfortable zone, most of the lull was over in the last�
month, said Deven Choksey, managing director of KR Choksey Securities.�
Market is expecting positive outlook from budget in subsequent months.� �
Global markets
Oil prices made fresh gains on Friday and were heading for their biggest annual
percentage rise since 2009, with world stocks also up nearly 6 per cent over the
year despite concerns over China s slowing growth and weakening currency.�
Global markets have fared surprisingly well in a year marked by major political
shocks, including June s Brexit vote and the unexpected election of Donald�
Trump as US president in November. US stocks have hit successive record highs
and emerging equities have rebounded 8 per cent after three years in the red.