Indian benchmark indices are set to end the year 2015 with a loss, after whopping returns in 2015. The returns posted by the markets in 2015 would be negative 7-8 per cent, unless the markets recover in the last few days.
The Sensex, which began the year at 27,507 points is now at 25,838 points, marking losses for the year 2015.
Pharma shares like Dr Reddy's and Sun Pharma dropped sharply this year, as US FDA worries continued to haunt pharma companies in India. IT Stocks like TCS, HCL Tech took a beating from higher levels on account of dismal growth in last few quarters.
Banking stocks like ICICI Bank, State Bank of India and Axis Bank have seen severe price damage as NPAs at banks continue to leave analysts and investors worried. The collapse of crude oil prices have seen E&P companies like ONGC and Cairn India lose heavy ground.
Select stocks like Reliance Industries and Hindustan Unilever may not end the year with losses and have remained resilient.
As we head in 2016, it is unlikely that we may see stupendous returns as in the past. If an investor can get returns near 10 per cent, he should consider himself lucky. There will be a number of things individuals would have to watch-out for in 2016. These include the movement of crude oil prices; further hike in interest rates in the US; the reform process that the government undertakes; and interest rate cuts by the RBI.
As things stand there is unlikely to be any major triggers for the markets in the next one month, unless of course there is a huge rebound in corporate earnings in the next quarter.