First day of 2016 may see markets opening in red

Indian equities indices closed with handsome gains on the last day of the F&O expiry date. The Sensex rose 157.5 points, or 0.61%, to close at 26,117.54, while the Nifty rallied 50 points, or 0.63%, to close at 7,946.35 while the broader markets underperformed. The BSE Midcap and Smallcap indices gained 0.35% and 0.49% respectively. Sensex and Nifty posted a first yearly loss by 5% and 4.1% respectively in 4 years.

On the global front, U.S. markets ended lower by 1% on the final trading day of 2015 and also their first negative annual performance since 2008. The Dow ended down 178.84 points, or 1%, to 17,425.03 and the S&P 500 index lost 19.42 points, or 0.9%, to 2,043.94. The Nasdaq composite fell 58.43 points, or 1.2%, to 5,007.41. For the full year, the Dow Jones Industrial Average lost 2.2% while the S&P 500 fell 0.7%. However, Nasdaq Composite Index rose 5.7% in 2015.

Oil was the biggest loser in 2015, with the crude price in U.S. markets diving 30.5% for the year and Brent crude fell 35% to USD 37.28 a barrel.

European markets also ended lower on the final trading day of 2015 due to drop in commodity prices. Germany's DAX was closed for a public holiday on Thursday. The FTSE closed 0.51% lower and the CAC-40 fell by 0.86%. For the full year, Germany’s DAX 30 index scored a 9.6% yearly gain. France’s CAC 40 index gained for the year to 8.5% while the FTSE 100 dropped 4.9% in 2015.

Most of the Asian stock markets are closed on Friday and will reopen on Monday. While on domestic front, A SGX Nifty 50 index future for January Series traded down 28 points at 7,920. Indian market may open in red on the New Year. Besides, auto stocks would be in focus amid release of monthly sales figures from Friday.

While we wish you a wonderful and profitable year ahead, stay tuned with us for a better understanding of the markets in 2016.