Indian equity markets record modest growth in 2016: Economic Survey

Mumbai: The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley said the Indian equity markets recorded modest growth of 1.95 to 3 percent during the calendar year 2016 as compared to losses registered in 2015.

In 2016, the S&P BSE Sensex gained 1.95 percent, while the NSE Nifty was higher by 3.0 percent.

The survey pointed out that the upward momentum of the Indian markets peaked around September 2016 and lost steam thereafter, particularly in the wake of foreign capital outflow from emerging markets.

According to the survey, both global and domestic factors had a sizable impact on the performance of the Indian markets.

"Some of the closely watched developments were the Brexit, the US Presidential election as well as policy announcements by the US Federal Reserve and the RBI (Reserve Bank of India)," the survey noted.

"In addition, other factors which weighed on market sentiment included the policy decisions taken by the OPEC (Organisation of the Petroleum Exporting Countries) regarding oil production and the appointment of the new governor of the RBI," it noted.

The survey also mentioned that the RBI took a number of measures to strengthen the corporate bond market in India.

The new measures announced by the RBI include issue of masala bonds by commercial banks and undertake `repo/reverse repo` contracts in corporate debt securities by brokers registered with the Securities and Exchange Board of India (SEBI), survey added.