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Indian shares end year with 9 pct gain; uncertain 2014 looms
December 31, 2013 / 12:17 PM / 4 years ago

Indian shares end year with 9 pct gain; uncertain 2014 looms

* BSE index ends 0.13 pct higher, NSE closes up 0.21 pct
    * BSE closes 2013 with 8.9 pct gains, NSE up 6.8 pct
    * IT, Pharma cos top performers of 2013

    By Himank Sharma
    MUMBAI, Dec 31 (Reuters) - Indian shares edged higher on
Tuesday, sending the benchmark BSE 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) and Sun
Pharmaceutical Industries Ltd 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 BSE benchmark index closed at 21,170.68, up
27.67 points for the day.
    For the year, the BSE 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, BSE 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 broader NSE index 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 shares doubled this year, while
Tata Consultancy Services, and Wipro Ltd surged 73
percent and 61.3 percent, respectively.
    Infosys Ltd shares surged 50.3 percent in 2013.
    Sun Pharmaceutical Industries Ltd and Lupin Ltd 
 rose over 54 percent and 47 percent respectively for
the year.
    On Tuesday, blue chips were the leading gainers, with
Reliance Industries Ltd closing up 0.91 percent, Tata
Motors Ltd ending 0.4 percent higher and Tata
Consultancy Services gaining 0.7 percent.
    Shares of India's Apollo Tyres Ltd surged 5.77
percent after a deal to acquire U.S.-based Cooper Tire & Rubber
Co 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
 ended up 1.3 percent and Ambuja Cements Ltd 
rose 0.4 percent. 
    Shares in supermarket chain Trent Ltd rose 0.4
percent a day after India's foreign investment regulator
approved a $110 million investment plan by Britain's Tesco
. 
    
    
    For additional stocks on the move double click       
     
   FACTORS TO WATCH                                             
* Euro set to be 2013's top-performing major currency    
* Brent oil to end 2013 flat as Libya offsets weak demand 
* World shares seen gaining more in 2014            
* Foreign institutional investor flows         
* For closing rates of Indian ADRs                      
                       
   ASIA-PACIFIC STOCK MARKETS:                                  
Pan-Asia........ Japan.......  S.Korea... 
S.E. Asia.......        Hong Kong... Taiwan.... 
Australia/NZ....        India....... China..... 
                        
   OTHER MARKETS:                                               
Wall Street ....         Gold ....... Currency.. 
Eurostocks.....         Oil ........ JP bonds... 
ADR Report .....       LME metals. US bonds.. 
Stocks News US.. Stocks News Europe    
                       
   DIARIES & DATA:                                              
Indian Data Watch   Asia earnings diary 
U.S. earnings diary     European diary       
Indian diary          Wall Street Week Ahead  
Eurostocks Week Ahead                                   
                         
   TOP NEWS:                                                    
   For top Asian company news, double click on:       
   U.S. company news  European company news  
   Forex news        Global Economy news  
   Technology news  Telecoms news        
   Media news       Banking news           
   Politics/General    Asia Macro data      

 (Editing by Anand Basu)

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