Sensex ends the year on promising note, up 120 pts

Mumbai, Dec 31 (PTI)The BSE benchmark Sensex rose for the
third straight day in the last trading session of the year,
adding 120 points on sustained buying amid indications that
strong economic growth will boost company earnings.
Brokers said the Sensex ended the year by becoming the
best performer in the Asian region during 2010.
In continuation of 363 points rise in the last two
trading sessions, the Sensex advanced by another 120.02 points
to reach 20,509.09.
The benchmark gained 17.43 per cent this year, extending
its historic 82 per cent rally last year on faster recovery in
the economy. The upward journey began from 17,464.81 point
mark level on December 31, 2009.
In the 30-BSE Sensex components, 22 stocks closed higher.
Besides, barring IT, all sectoral indices ended in the
positive zone.
The broader market's National Stock Exchange index Nifty
rose by 32.65 to 6,134.50, after touching the day's high of
6,147.70 as stocks in realty, banking and auto segments gained
on strong buying.
Companies on the measure are valued at an average 19.4
times estimated earnings this year, compared with a recent
peak of 20.1 times on November 5.
The foreign fund inflow was up 61 per cent this year,
making the gauge the most expensive in Asia and among the BRIC
markets that also include Brazil, Russia and China.
Global funds bought a net Rs 6.05 billion of Indian
equities on December 29, taking this year’s record flows into
equities markets to Rs 1.31 trillion, according to data from
Securities and Exchange Board of India.
The business volumes slightly declined as some of the
foreign funds remained absent from the market following
year-end vacations, while general investors adopted cautious
approach concerned over high inflation and the health of
the U.S. and European economies.
The Sensex climbed every quarter since May 2009, when
Prime Minister led the Congress party to its biggest electoral
victory in two decades, on pledge to cut fiscal deficit and
boost economic growth.
The gauge climbed to a record on November 5 to 21,108.64
and has more than doubled since plunging to a low of 8,160.40
in March 2009, amid the global financial crisis.
Friday's gain in the market was supported by a steep rise
in the realty sector, up 2.40 per cent at 2,856.22, followed
by banking sector (1.40 per cent) to 13,379.73. The auto index
rose by 0.93 per cent to 10,235.41, and consumer durable index
by 0.72 per cent to 6,356.97. PTI