MUMBAI: Indian markets seem set to end 2009 on a high note. Positive global markets and encouraging comments from the finance minister Pranab Mukherjee that the stimulus package may not be withdrawn in a hurry helped the benchmarks hit new highs of the year. However, trade may turn volatile later in the day due to December F&O series expiry.

"Today India is the preferred destination for equity investors across the world as is evidenced by the FII & FDI inflows into our markets which has crossed USD35bn in this financial year.

Going forward, the VIX having dropped from 80 a year ago to 20 now is indicative of growing confidence in the markets and thus strong flows would be expected to continue. Our own people, particularly retail investors could also recognize this and reap the long term benefits of investing in an economy which is expected to grow at the rate of at least 7.5-8% p.a. for the next many years. We should take care not to lose this opportunity out of a case of "ghar ki murgi dal baraabar," said Ms Madhabi Puri Buch, MD & CEO, ICICI Securities.

At 10:31 am, Bombay Stock Exchange’s Sensex was at 52-week high of 17503.06, up 159.24 points or 0.92 per cent. The index touched a low of 17365.37 in early trade.

National Stock Exchange’s Nifty was also at a fresh 52-week high of 5215.80, up 45.45 points or 0.88 per cent. The index touched a high of 5215.80 and low of 5168.75.

“Indices are likely to open with an upside gap sustainability of which will lead to further rally. Today’s session might be a little more volatile with the F&O settlement and quarter/month/year end. A close below the breakout point of 5182 will take Nifty back into the range of 4940-5180 and will keep the range intact on monthly and weekly charts,” said Edelweiss report.

BSE Midcap Index was 0.86 per cent and BSE Smallcap Index moved 1.16 per cent higher.

Amognst the sectoral indices, BSE Oil&gas Index advanced 1.39 per cent, BSE Power Index gained 1.15 per cent and BSE PSU Index moved 0.93 per cent higher.

NTPC (2.40%), Jaiprakash Associates (2.35%0, Mahindra & Mahindra (1.75%), Reliance Industries (1.69%) and Reliance Communications (1.01%) were amongst the top Sensex gainers.

The government plans to allow NTPC to sell around 10% capacity at market-determined prices, a move expected to boost the power utility’s profit by up to 40% and spiff up its valuation as it braces for disinvestment.

Maruti Suzuki (-0.16%) was the only index loser.