Selective buying amid a firming global trend helped the BSE bluechip index end 2013 with nearly 9 per cent gain during a year where investor confidence recovered. In 2012, the Sensex had jumped nearly 26 per cent.
After a better start today, the 30-share closed higher by 27.67 points, or 0.13 per cent, at 21,170.68 led by stocks of power, refinery and healthcare sectors.
Across market, investors were richer by over Rs 1 lakh crore with market capitalisation ending at Rs 70.4 lakh crore.
The broad-based National Stock Exchange index Nifty rose by 12.90 points, or 0.21 per cent, to end at 6,304, after touching the day's high of 6,317.30. For the full year, Nifty gained 6.75 per cent.
Also, SX40 index of MCX Stock Exchange ended 29.99 points higher at 12,582.69.
Brokers said while trading was lacklustre, the market remained in positive terrain as investors picked fundamentally strong stocks.
Sentiment improved further on a firming trend in the Asian region and higher opening in Europe before American consumer confidence and housing data, they added.
Sectorally, the BSE Power sector index gained the most by 0.60 per cent, followed by Oil & Gas index (0.52 per cent), Healthcare index (0.21 per cent) and Capital Goods index (0.21 per cent).
* 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
Indian shares end year with 9 pct gain; uncertain 2014 looms
(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 .
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