Sensex up 47% in 2006

The market ended calendar 2006 on a strong note, with the Sensex settling at 13,786.91, less than 200 points off its all time closing high of 13,972.03 of 7 December 2006.

It rose 46.7% for the calendar year.

The S&P CNX Nifty gained 39.8% for the calendar year 2006.

Banking, telecom, IT and cement shares hogged the limelight in 2006.

After a sharp setback witnessed in May-June 2006 due to fears of rise in US interest rates, the market staged a solid rebound and key indices struck lifetime highs in December 2006.

Strong corporate earnings growth remained the key driver of the uptrend in share prices.

FIIs continued to mop up Indian stocks betting that earnings growth of India Inc. will remain strong in a booming Indian economy. The net FII inflow in 2006 totaled $8.2 billion compared to a record inflow of $10.7 billion in 2005. FIIs mopped up Indian equities notwithstanding concerns about stretched valuations of Indian equities.

Mutual funds bought shares worth a net Rs 11453 crore for the 9-months period April-December 2006.