Markets ended marginally lower on the last trading day of 2012 as investors remained cautious over US lawmakers not reaching a deal in time to avert the fiscal cliff.
The 30-share Sensex ended down 18 points at 19,427 and the 50-share Nifty slipped three points at 5,905.
However, both the benchmark indices gained over 25% each in 2012. The Sensex and Nifty gained 25.7% and 27.7%, respectively.
Meanwhile, painting to better picture for 2013, Morgan Stanley analysts expect Sensex companies to grow 10.8% on a year on year basis in FY2013 as against the consensus estimates of 8.3%.
It also expects Sensex companies to grow 14.2% in FY2014 as against the consensus estimates of 13.9%.
Most markets in Asia remained closed on account of year end holidays. However, concerns over the US 'fiscal cliff' continued to weigh on market sentiment.
The Shanghai Composite was up 1.6% and KLSE Composite was down 0.12%.
Indian companies will start unveiling Q3 December 2012 results from mid-January 2013.
Infosys announces Q3 results on 11 January 2013 while HDFC Bank unveils Q3 results on 18 January.
BSE realty index jumped 1% to 2,111. Consumer durables, PSU and power shares were also in the green.
Auto stocks were mixed ahead monthly sales data for December 2012. Tata Motors added 1% at Rs 312.
Hero MotoCorp and Mahindra & Mahindra also advanced marginally.
The Ministry of Agriculture said after trading hours on Friday that the sowing of rabi or winter crop is picking up.
The sowing of coarse cereals and oilseed crops is higher, the statement from the ministry said. FMCG shares however, slipped marginally.
ITC was the biggest loser among Sensex stocks - down 0.8% at Rs 286. Hindustan Unilever managed to hold on to gains and went up 0.8% at RS 525.
IT stocks were mostly lower amid concerns about upcoming US fiscal cliff. BSE IT index traded flat at 5,684.
TCS shed 0.5% while Wipro added 0.8% at Rs 394.
From the gainers -- Tata Power, Hindalco, ONGC, Gail And NTPC were noticeable.
On the other hand, Larsen & Toubro dropped 0.7%, followed by Cipla, Maruti Suzuki, HDFC and Sun Pharma.
Shares in Bharti Infratel rose 1% to Rs 193 after the FTSE said on Friday it would include the mobile tower company to its large cap index starting on January 7, with an investability weighting of 9%.
Indian Overseas Bank is planning to raise funds by way of rights issue.
The bank informed the BSE that the board has decided that they will be going for a rights issue of 20 crore equity shares of face value of Rs 10 each at a premium to be decided based on the market conditions.
Shares of IOB ended up 0.6% at Rs 85.65.
Going forward, markets would be looking at the HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for December 2012 on Wednesday.
This will be unveiled by Markit Economics.
BSE market breadth was marginally positive. Out of 3,013 stocks traded, 1,591 shares advanced while 1,296 shares advanced.