Mumbai, Dec 29 (IANS): Nifty corrected after rising for five sessions on Friday, but closed the week higher by 1.79 per cent.

It closed the month higher by 7.9 per cent and the year higher by 20 per cent, said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty snapped a five-day rally on Friday and ended in the negative.

At close, Nifty was down 0.22 per cent or 47.3 points at 21,731.4. Cash market volumes on the NSE again dipped below Rs 1 lakh crore at Rs 0.96 lakh crore.

Broad market indices ended in the positive, outperforming the Nifty even as the advance-decline ratio improved to 1.15:1. Activity was concentrated in auto, banks and rail stocks, Jasani said.

The market witnessed mild profit booking on the last trading day of the year, said Vinod Nair, Head of Research at Geojit Financial Services.

While the euphoria is expected to continue during the start of the next year on account of the exuberance of rate cuts and the drop in bond yields, he said.

Oil prices, on the other hand, fell by 10 per cent during the year, which could ease inflationary pressure and support the operating performance of the corporates.

“We feel that though the outlook on broader indexes is moderate in the short to medium term, the largecaps will maintain their vibrancy due to strong earnings growth and in anticipation of the continuation of premium valuation," he said.