Investor wealth soars 27pc to over Rs 67 lakh cr in 2012
was driven by strong global cues on hopes of some stabilidation in the Europe and gradual improvement in the US economic data.
On domestic front, the government's decision to allow Qualified Foreign Investors (QFI) to invest directly in local equities from January 15, 2012 and signs of more foreign funds inflow also underpinned sentiment.
The Union Budget, which was delayed this year due to the Assembly polls in five states, presented by then Finance Minister Pranab Mukherjee on March 16 failed to enthuse the investors and plans to revive the economy.
The market then turned negative and remained dull for the next few months due to slowdown in GDP growth, worries over macroeconomic conditions due to higher global crude oil prices, as India imports two-third of its oil consumption, rising trade deficit, weakening currency and global uncertainty.
Fears that reform process may take back seat after the ruling Congress party suffered a setback in some states in March and cut in China's growth target also weighed on the market sentiment.
Revival of monsoon at the fag-end and Moody's retaining stable outlook on India supported the weak stock markets.
Moreover, announcement of reform measures such as allowing FDI in multi-brand retail and downsizing the LPG subsidy by the government later pushed the Sensex higher since September.
The Sensex moved in a range of 19,612.18 and 15,358.02 before ending at 19,242.00 on December 21, 2012, displaying a rise or 3,787.08 points or 24.50 per cent.
The wide-based S&P CNX Nifty of the NSE also flared up by 1,223.40 points or
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