Sensex up 121 pts, ends 09 with biggest annual gain in 18 yrs

The Bombay Stock Exchange benchmark index Sensex closed on a promising note on the last trading session of the year today by rallying 121 points and closed the day with the biggest annual gain in 18 years, on renewed fund-based buying and positive overseas cues.

After opening with a 139-points rally, the index touched a high of 17,530.94, before ending the session down with a gain of 120.99 points at 17,464.81, as the latest food inflation data that touched nearly 20 percent, slightly dented the momentum towards the later part of the session. However, capital goods and refinery stocks supported the market.

The broader National Stock Exchange index Nifty 50 too surged to retain the psychological 5,200 mark by rising 31.60 points to close at 5,201.05. It touched the day's high of 5,221.85 points.

The Sensex witnessed a historic 82 per cent rally this year, boosted by the UPA victory in May on expectations that new government would introduce measures to boost economic growth. Another reason for the rally was the sooner-than-expected economic recovery of the country.

The last day's gain was backed by power sector stocks led by NTPC by rising 1.20 per cent to Rs 235.70, a level never seen since the last two years on reports the government may relax a rule to allow power producers to sell at market prices. Tata Power rose by 1.65 per cent to Rs 1,377.95.

Trading sentiment boosted on reports that the government might approve to sell about 10 per cent of power company production at market-determined prices, boosting profits.