Domestic share indices rose on Friday tracking broader Asia and ended 2017 with the biggest yearly gains in three as strong foreign fund inflows, hopes of an improving economy and higher corporate earnings boosted investor confidence.

The BSE Sensex rose 209 points to finish at a fresh life-time high of 34,056.83 on the last trading day of 2017, capping off a remarkable year which saw the benchmark surging by 28 per cent. Power, IT, auto and infrastructure stocks witnessed robust buying, while the beginning of January 2018 series of futures and options also added to the momentum.

The 30-share index started the day on a strong note at 33,889.39 and hit a high of 34,086.05 before closing at 34,056.83, up by 208.80 points, or 0.62 per cent. It surpassed its previous closing high of 34,010.61 reached on December 26. The broad-based NSE Nifty rose 52.80 points, or 0.50 per cent, to end at 10,530.70 after trading between 10,538.70 and 10,488.65.

Barring oil and gas, metal and energy, all the BSE sectoral indices led by telecom, IT, FMCG, Power, TECk, auto, power, capital goods and healthcare were up, rising by up to 1.63 per cent. The barometer had lost 162.58 points in the previous two sessions. Tata Motors, Axis Bank, TCS, Hero MotoCorp, Adani Ports, Wipro, Asian Paints, Maruti and HDFC were major gainers, which supported the indices.

Both the Sensex and the Nifty rose for the fourth straight week. The Sensex advanced by 116.53 points, or 0.34 per cent, while the Nifty gained 37.70 points, or 0.35 per cent, during the period.

The Sensex clocked its best performance in recent years in 2017, rising by 7,430.37, or 27.91 per cent year-on-year.

It had gained 508.92 points, or 1.94 per cent, in 2016.

On Friday, shares of Reliance Communications Ltd surged as much as 35 per cent to their highest since April 7. The Anil Ambani-backed company on Thursday agreed to sell its wireless assets to Reliance Jio Infocomm Ltd, the telecoms arm of elder brother Mukesh Ambani's Reliance Industries Ltd. Reliance Industries, up 0.8 per cent, and Idea Cellular Ltd, up more than 3.5 per cent, extended gains for a second straight session [ Read more ]. Meanwhile, shares of Gujarat-based Astron Paper & Board Mill Ltd more than doubled on market debut.

Equities have been on a record-setting run through the year on optimism that the government would continue its reform agenda after winning elections in Gujarat. Foreign investors have net bought Indian stocks worth $7.6 billion so far in the year, according to clearing and exchange data. “Ever since Gujarat elections, expectations are rising that the upcoming Budget would be rural focused and that is supporting the market sentiment in the near term. Though crude's spike towards $70 could be a risk,” said Hitesh Agrawal, EVP & Head Retail Research, Religare Securities Ltd.

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