“The performance in 2009 surpassed the expectations of even the most optimistic person. There were not many places left for foreign funds to invest and India was among the few attractive destinations,” said Jagannadham Thunuguntla, equity head at SMC Capitals.

1. Sensex closes with biggest annual gain in 18 years
Mumbai, December 31
Putting behind the worst annual performance ever, Indian equities were on a roll in 2009,
catapulting a key index by more than 80 per cent, to close the year with one of the best
gains among emerging markets.
At its closing bell today, the Sensex was ruling at 17,464.81 points with an impressive gain
of 7,817.5 points, or 81.03 per cent, over the previous year’s close at 9,647.31 points.
This was the best annual performance since 1991, and was in sharp contrast to 2008, when
the Sensex ended with a hefty loss of 10,639.68 points or 52.45 per cent, making it the
third-worst performing equities index among emerging markets.
The story was no different at the NSE, where the broader 50-scrip S&P CNX Nifty gained a
hefty 2,241.9 points or 75.76 per cent when it closed at 5,201.05 points today. The main
factors that made key indices rise like phoenix was the resilience of the Indian economy and
impressive growth despite global slowdown that was also reflected in corporate earnings
and the return of the foreign
institutional funds.
According to market watchdog Sebi, such overseas funds pumped about $17.46 billion into
the Indian stock markets in 2009, as opposed to a net sale worth $13.135 billion for the
first time in over a decade.
“The performance in 2009 surpassed the expectations of even the most optimistic person.
There were not many places left for foreign funds to invest and India was among the few
attractive destinations,” said Jagannadham Thunuguntla, equity head at SMC Capitals.
Some of the 13 sector-specific indices stood out because of their performance -- the metals
index appreciated the most, up 233.68 per cent, while auto followed with a gain of 204.16
points.
Similarly, the indices for information technology was up 132.78 per cent, capital goods
gained 104.26 per cent, consumer durables rose 97.8 per cent, banking gained 83.9 per
cent, state-run enterprises inflated 80.54 per cent, power moved up by 74.3 per cent.
On the whole, the year started on a promising note with the government unveiling a second
dose of fiscal stimulus to help the economy weather the adverse impact of a slowdown in
the global economy. As a result, the Sensex rallied till January 6 and gained 7.13 per cent in
just three days of trading. But then came the confession of a multi-million dollar fraud by
Satyam Computer founder B. Ramalinga Raju, triggering a 7.25 per cent fall in just one
session.

2. Till February, the barometer index was oscillating between 9,000-odd points and 10,300-
levels. But as signs of a prolonged economic recession receded the world over, Indian
equities found more takers and reflected in steady rise in the index.
By the beginning of May, it was trading comfortably around the 12,000-point mark and gave
a thumping welcome to the electoral victory of the Congress party-led United Progressive
Alliance -- that even saw suspension of trading as indices hit the upper circuit twice. The
remaining months saw a steady rise with interim corrections even as events like the
presentation of an industry-friendly Budget boosted investor sentiments.
Top five gainers during 2009 were Tata Motors, up 398.33 per cent at Rs.792.60; Mahindra
and Mahindra, up 293.23 per cent at Rs.1,080.80; Sterlite Industries, up 230.45 per cent at
Rs.861.65; Hindalco, up 211.23 per cent at Rs.160.75; and Maruti Suzuki, up 199.88 per
cent at Rs.1,559.65.
Only three stocks ended lower -- Bharti Airtel was down 54.02 per cent at Rs.328.80;
Reliance Communications was down 23.92 per cent at Rs.172.90; and Reliance Industries,
which ended lower since the company declared a 1:1 bonus.
Looking ahead, the markets expect some more action once the government’s divestment
programme gets under way, even as investors have their fingers crossed on when the
Sensex will breach the magical 21,000 mark. — IANS