The S&P BSE Sensex kicked off year 2016 on a flat note and ended the day 43 points higher, while broader CNX Nifty staged a late rebound to end at its highest level in nearly two months above its key support level of 7,950.
Participation in the domestic markets remained weak on Day 1 of January F&O series as most of global equity markets stayed closed to observe New Year's Day.
The 30-share index ended the day at 26,160.90, up 43.36 points, while broad-based 50-share index quoted 7,963.20, up 16.85 points at close.Market breadth remained positive with 17 of the 30 Sensex components ending the day in green.
Investors back home are now looking towards the second week of January for signs of a recovery in corporate balance sheets when Indian companies report quarterly earnings."IT, pharma will do well, private sector banks in the second half of the year will do well and cement will do well on infra spending," Gaurang Shah, vice president of Geojit BNP Paribas said while listing his preferred sectors for 2016.
Stock of Adani Ports was the best performer on Sensex and added 2.8 per cent.
Shares of IDBI Bank gained 1.12 per cent after the government gave its go-ahead to the bank to raise Rs 3,771 crore during the year, by way of Qualified Institutional Placement (QIP).
Shares of aviation companies such as SpiceJet, Jet Airways and IndiGo rallied up to 14 per cent on New Year's day after the oil companies cut aviation turbine fuel (ATF) prices by 10 per cent on Thursday on account of low crude oil prices globally.
The prices have slumped about 24 per cent from the January 2015 level.
The stock of SpiceJet hit its fresh 5-year high of Rs 85.90, up 14.15 per cent on the Bombay Stock Exchange (BSE). It ended 9.44 per cent higher.
Shares of Jet Airways added 8.28 per cent after gaining 10.84 per cent to log its fresh 52-week high of Rs 778.60. The scrip hogged limelight also because it debuted from January series on F&O segment.Stock of InterGlobe Aviation, which operates low-cost airline IndiGo, also rose as much as Rs 1395.50, up 13.08 per cent. It settled the day 8.73 per cent up.
Overnight, US markets closed lower partly in reaction to the release of disappointing economic data. The S&P 500 fell 0.94 per cent on the last trading day of 2015 and lost 0.71 per cent for the year. The Dow Jones lost 2.23 per cent for the year, its first annual decline since 2008, while Nasdaq Composite gained 5.73 per cent after surpassing levels not seen since the dot-com bubble in 2000.
(With inputs from Reuters)