Markets: Key events in 2012

It has been an eventful calendar year 2012 for the equity markets across the globe. In the Indian context, the Nifty gained 26.6 per cent from close of trade on 30 December, 2011 till 21 December, 2012.

The returns for the Indian bourses during this period are higher as compared to some of the global peers like Hang Seng (up 22.09 per cent), Nikkei (up 17.6 per cent) and Taiwan Weighted (up 6.3 per cent), Nasdaq Composite (16 per cent), CAC 40 (15.9 per cent) and S&P 500 (up 17.6 per cent).

ISE National-100 (up 49.6 per cent), Karachi 100 (up 48.6 per cent), DAX (up 29.5 per cent) and KFX (up 27.5 per cent) are some of the global indices that fared better than India.

Foreign institutional investors have pumped in a net $23 billion (Rs 122,713.1 crore) so far in 2012, data shows. This is their second highest investment in India since 1992, with only 2010 witnessing a staggering $29 billion (Rs 133,048.6 crore) since they set foot on Indian shores.

The BSE’s market capitalisation (m-cap) surged from Rs 5338497 crore as on 30 December 2011 to Rs 6790722 crore as on 24 December 2012, translating into a rise of Rs 1452225 crore, or around 27 per cent.

In terms of sectors, the BSE Banking, Realty, FMCG and Consumer Durables sectors were amongst the top performers – surging 54.6 per cent, 50.3 per cent, 46.7 per cent and 44 per cent, respectively during the above-mentioned period. The BSE IT index was the sole loser, slipping a marginal 1.4 per cent.

While on one hand, the gush of liquidity sent the benchmark indices soaring in the first three months of 2012, macro-economic headwinds, policy logjam, statements from the Reserve Bank of India (RBI) and the political upheaval sobered the mood between April – June in the Indian context.

Here is a list of events that impacted markets right through 2012.

Sensex up 421 points on fresh inflows amid some positives, including RBI's plan to reverse tight monetary policy stance, and a firm global equities – 03/01/2012

Sensex drops 371 points as Anna Hazare factor adds to investors' worries – 30/01/2012

FIIs are estimated to have purchased shares worth about Rs 23,500 crore ($4.3 billion) in 24 sensex companies during the last quarter – 31/01/2012

Markets slip 478 points hard on rising crude oil prices, igniting investor worries that it will fuel inflation and dampen chances of interest rate cuts – 27/02/2012

Sensex down 405 points on weak rupee, CAG reports, coal scam and FII selling – 22/03/2012

Sensex up 346 points after Finance Minister Clarification on P-notes – 30/03/2012

Sensex down 367 points, TCS down 6% as GAAR worries weight, also FII outflow fears – 08/05/2012

Sensex up 434 points hopes of a policy rate cut by the Reserve Bank of India in its upcoming meeting. Expectations that the European Central Bank (ECB) will announce more stimulus measures to resolve euro-zone crisis - 06/06/2012

Sensex gets a GAAR boost; shoots up by 439 points – 29/06/2012

Sensex fell 281 points biggest fall in two months, weighed down by Spain woes and road block to FDI in retail. - 23/07/2012

Sensex joins global rally after ECB move and QE3, up 337 points – 07/09/2012

Government decision to hike diesel prices and US Federal Reserve approved a new economic stimulus plan to lifts Sensex 443 points to new 14-months high – 14/09/2012

Sensex up 404 points as the stock market gave thumbs up to UPA government’s resolve to push ahead with economic reforms on the back of continued support from the Samajwadi Party. Markets surge as on the back of positive foreign fund flows with the government notifying its decision to allow FDI in multi-brand retail, aviation and broadcasting sectors – 21/09/2012

Credit rating agency Moody's said that India's outlook is stable and reports of a debt relief package to Greece that boosted stock markets globally – 27/11/2012

With Ashok Jayavant Divase in Mumbai