Sensex, Nifty hit the first-ever upper circuit in history.
Year 2009 was the most profitable year in the last two decades for Indian stock markets. After a severe fall in 2008, there was an almost equally sharp reversal in 2009 as markets across the globe strengthened aided by stimulus packages. As the global economy sprouted green shoots of recovery, investor confidence returned to the stock markets with many a market ending 2009 on a high note. The markets in the US and Asia Pacific were around 15-month highs at the end of 2009.
Back home, our markets began the year on a shaky note as the subprime crisis had its after-effects. The BSE benchmark index, the Sensex, dropped around 16.5 per cent from the beginning of 2009 and touched a low of 8,047 in early March. However, there was a swift recovery thereafter which saw the benchmark regaining lost territory by March-end. The recovery did not stop there, from 9,700, the Sensex rallied over the 12,000-mark at the start of May. Improved financials coupled with the comprehensive win by the UPA in the general elections was the final thrust for the bulls. The Sensex and the Nifty hit their first-ever upper circuit on May 18, 2009. Trading was suspended after just a few minutes of trade for the whole day. In the past, the markets were shut only because the indices had hit their lower circuits.
The markets, thereafter, continued to trend higher as the year progressed albiet accompanied with random corrective moves. The Sensex and Nifty finally ended the year in a fitting manner at the highest point. The Sensex touched a year (in fact 19-month) high of 17,531 today, and eventually was up 81 per cent (7,817 points) at 17,465. The NSE Nifty surged nearly 76 per cent (2,242 points) to 5,201.
Among the sectoral indices - the BSE Metal index soared 234 per cent to 17,399. The Auto index tripled to 7,436. The IT, Smallcap, Midcap and Capital Goods indices finished with gains in excess of 100 per cent each. The BSE FMCG index was the significant underperformer when compared to the Sensex. The FMCG index was up 40.5 per cent.
Nano maker - Tata Motors was the biggest gainer of the year among the Sensex stocks. The stock zoomed almost 400 per cent to Rs 793. Fellow auto maker also did a good catch up job, with a near 300 per cent jump at Rs 1,081. Maruti surged 200 per cent to Rs 1,560.
Metal majors - Sterlite, Hindalco and Tata Steel moved up around 185-230 per cent each at Rs 862, Rs 161 and Rs 217, respectively.
TCS and Wipro led the gainers among the IT's. While the former soared 213 per cent to Rs 750, the latter rallied 191 per cent to Rs 679.
Jaiprakash Associates, Infosys, Larsen & Toubro, Hero Honda, Grasim, ICICI Bank, Reliance Infrastructure, Reliance, Tata Power and ACC also outperformed the Sensex with gains in excess of 81 per cent each.
Telecom stocks, however, ended with losses mainly because of the big blow in October on account of a price war between the telcos. Reliance Communications tumbled 24 per cent to Rs 173, and Bharti Airtel shed eight per cent at Rs 329.
The foreign institutional investors pumped in around Rs 83,000 crore while the domestic mutual funds were net sellers of stocks worth Rs 5,250 crore during the year.
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