Indian shares dip 0.3 pct, bullish sentiment intact

* Mkt dips after rising for four sessions * Sensex up 80 pct in 2009 * On track for best yearly gains since 1991 * Investors optimistic on 2010 market outlook (Updates to close) By Ami Shah MUMBAI, Dec 30 (Reuters) - Indian shares fell 0.33 percent on Wednesday, ending a four-day winning streak that had lifted them to their highest close in 19 months, with losses led by cigarette-to-hotel firm ITC (ITC.BO) and Larsen & Toubro (LART.BO). ITC fell 2.15 and leading engineering and construction firm Larsen & Toubro fell 1.1 percent, after rising 5 percent and 4.6 percent respectively over the previous four days. "Market had run up quite a bit. I am taking solace from the fact that it is not correcting as such. It is just taking a breather today, which is perfectly fine," said Gajendra Nagpal, CEO of Unicon Financial. Weaker global markets added to the impetus to lock in profits on recent gains. The 30-share BSE Index .BSESN ended down 57.74 points at 17,343.82, with 17 components falling. On Tuesday, the market had posted it highest close in 19 months and had peaked just short of its intra-day high since May 2008. The market is up 80 percent in 2009, on track for its biggest annual rise since 1991, and more gains are expected in 2010. "The kind of money that is coming in the market, and kind of hope which is being built from the pre-allocation by funds, it seems the market may gain 20-25 percent over next one year," said Nagpal. "The domestic consumption story and GDP growth story are attracting investors. Despite the fact that the valuations are not cheap, they are willing to wait for long and remain invested," he added. The metals pack took a breather after a strong run-up. Tata Steel (TISC.BO), the world's eighth-largest steel maker by output, shed 1.2 percent after rising nearly 12 percent in the previous five sessions. Aluminium maker Hindlaco (HALC.BO), which had risen 18 percent in four sessions, fell 1.2 percent and Sterlite Industries (STRL.BO) shed 0.2 percent after a 7.2 percent gain in a similar period. Outsourcing firms and financial stocks remained in favour on a view they will benefit from an improving global outlook. Infosys Technologies (INFY.BO) and Tata Consultancy (TCS.BO) gained 0.1 percent, with Infosys hitting a record high during the day, on expectations of better demand from the banking, financial services and insurance segment, Nagpal said. Top private banker ICICI Bank (ICBK.BO) rose 0.3 percent to 880 rupees while State Bank of India (SBI.BO) rose 0.2 percent to 2,225.25. In the broader market, 1,790 gainers lead 1,098 losers on a healthy volume of 429 million shares. The 50-share NSE index fell 0.36 percent to 5,169.45. STOCKS THAT MOVED * Cement makers ACC (ACC.BO) and Grasim (GRAS.BO) rose 1.3 percent and 1.2 percent respectively on hopes demand would stay strong and and prices would stay firm, dealers said. * Liquor maker Radico Khaitan (RADC.BO) rose 3.4 percent to 120.15 rupees. The government approved Diageo's (DGE.L) plans to buy a stake of up to 100 percent in their joint venture firm, Diageo Radico Distilleries. [ID:nDEL002494] MAIN TOP 3 BY VOLUME * Ispat Industries (ISPT.BO) on 15.2 million shares * Tinplate (TINP.BO) on 11.2 million shares * Gammon Infrastructure (GAIN.BO) on 9.3 million shares FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee report [INR/] * Indian bond report [IN/] * Dollar hits 2-mth high vs yen, steady vs euro [FRX/] * Oil up above $79 on fuel stocks drop, econ recovery [O/R] * Asia stocks fade at year-end, dlr up [MKTS/GLOB] * U.S. stock futures set to dip; financials eyed [.N] * For closing rates of Indian ADRs INADR (Editing by John Mair)