Sensex ends year with 9 pct gain; uncertain 2014 looms

MUMBAI Tue Dec 31, 2013 6:33pm IST

1 of 3. A road sign stands next to the Bombay Stock Exchange building (R), August 3, 2005.

Credit: Reuters/Arko Datta/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The BSE Sensex edged higher on Tuesday, sending the index to a 8.9 percent annual gain and a record high this year, as foreign investor flows offset widespread concerns about a domestic economy suffering from low growth but high inflation.

Foreign institutional investors bought a net $20.1 billion worth of shares so far this year, according to provisional regulatory data, marking a second consecutive year of purchases after their $24.5 billion in 2012.

The strong foreign buying concentrated on exporters such as Tata Consultancy Services Ltd (TCS) (TCS.NS) and Sun Pharmaceutical Industries Ltd (SUN.NS) that were the top gaining shares this year. TCS and Sun Pharmaceutical benefited as the rupee hit a record low in late August.

However, analysts worry those foreign flows could ebb, leaving Indian shares exposed at a time when concerns about the economy abound, while the country faces the prospect of uncertain general elections due by May.

"Given the deceleration the growth and the various issues we faced this year, I think the year ended reasonably well compared to what we were thinking at one point of time," said S. Naren, chief investment officer of ICICI Prudential Asset Management Co.

"If after the elections the foreign investor believes that growth dynamic will improve, India will remain one of the best countries for a secular growth story would, so I think whether their will be substantial flows would depend on the election outcome

The Sensex closed at 21,170.68, up 27.67 points for the day.

For more stories

Rupee down 11 pct in 2013; taper, elections key in 2014: click reut.rs/KiFTta

Indian bonds see worst year since 2009; better times likely:click reut.rs/1cELHb6

World shares enjoy vintage year, seen gaining more in 2014: click reut.rs/1kX1cP6

Gold on track for biggest annual loss in three decades: click reut.rs/1gjwgFR

For the year, the Sensex rose 8.9 percent, compared with a 25.7 percent gain last year, a middle-of-the-pack performance in local currency terms for Asia-Pacific exchanges, according to exchanges tracked by Thomson Reuters.

However, in dollar terms, the index rose only 3.2 percent for the year due to an 11 percent plummet in the rupee, making the index the region's seventh worst performer as per Thomson Reuters data.

The Nifty held 0.21 percent on the day to end at 6,304, advancing 6.8 percent this year.

Exports dependent software service providers and pharmaceutical companies were the top performers this year, with many shares hitting a record high, benefiting from the weak rupee and growth recovery in the United States and Europe.

HCL Technologies (HCLT.NS) shares doubled this year, while Tata Consultancy Services, and Wipro Ltd (WIPR.NS) surged 73 percent and 61.3 percent, respectively.

Infosys Ltd (INFY.NS) shares surged 50.3 percent in 2013.

Sun Pharmaceutical Industries Ltd (SUN.NS) and Lupin Ltd (LUPN.NS) rose over 54 percent and 47 percent respectively for the year.

On Tuesday, blue chips were the leading gainers, with Reliance Industries Ltd (RELI.NS) closing up 0.91 percent, Tata Motors Ltd (TAMO.NS) ending 0.4 percent higher and Tata Consultancy Services gaining 0.7 percent.

Shares of India's Apollo Tyres Ltd (APLO.NS) surged 5.77 percent after a deal to acquire U.S.-based Cooper Tire & Rubber Co (CTB.N) fell through late last night.

Cement makers recouped some losses as Monday's sell-off over worries about weakening cement prices was seen overdone: ACC Ltd (ACC.NS) ended up 1.3 percent and Ambuja Cements Ltd (ABUJ.NS) rose 0.4 percent.

Shares in supermarket chain Trent Ltd (TREN.NS) rose 0.4 percent a day after the foreign investment regulator approved a $110 million investment plan by Britain's Tesco (TSCO.L).

(Editing by Anand Basu)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage