MUMBAI:Indian equity markets emerged as one of the the strongest performers amongst emerging economies this past year with a key index soaring almost 30 percent against 9 percent in the previous year - the gains mainly accruing due to a stable national government under Prime Minister Narendra Modi and a perception that reforms were back on track.

The year also saw a record inflow of net investment by foreign funds pegged at $16.11 billion in equities. The data with the National Securities Depository Limited (NSDL), showed that the overall inflows in equities and debt market stood at $42.35 billion.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which stood at 21,170.68 points as on Dec 31 last year, was up 6,328.74 points, or 29.89 percent, as trading for the year ended Wednesday at 27,499.42 points.

The barometer index touched a high of 28,822.37 points on Nov 28 and a low of 19,963.12 on Feb 4. The wider 50-scrip Nifty of the National Stock Exchange (NSE) which closed 2013 at 6,304 points, ended 2014 with gains of 1,978.7 points or 31.38 percent at 8,282.70 points.

It touched a high of 8,626.95 points and low of 5,933.30 during the year.

"The defining moment was the clear mandate in favour of one political party in the elections. The government provided the optimism on strong reforms measures in the times to come. This boosted the the markets," Dipen Shah, head of private client group research, Kotak Securities, told IANS.

According to list complied by Zyfin Adviors' among individual stocks that comprise the 30-share Sensex, Axis Bank gained the most, by 93.9 percent; followed by Maruti Suzuki, up 89 percent; State Bank of India (SBI) at 77 percent and ICICI Bank, up 61 percent.

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