Indian markets emerge stronger in 10 years

By siliconindia   |   Thursday, 22 January 2009, 17:44 IST   |    1 Comments
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Mumbai: Unfazed by the economic and political turbulences, the Indian market has emerged a strong performer over the last 10 years. The 50-share Nifty has delivered a CAGR of 11 percent over 1999-2008 as against -4 percent by UK's FTSE 100, -3 percent by Nasdaq, -2.75 percent by S&P 500, -0.50 percent by Dow Jones and 4.75 percent by Hong Kong's Hang Seng. Followed by the Nifty's shine, the 30-share Sensex recorded CAGR of 10.75 percent during the period, reported The Economic Times, quoting Antique Broking. During the last 10 years to 2008, while the country witnessed indefinite pangs of the global downturn, it also was affected by the instabilities in the central and state and the continuous inability to counter terror attacks. "Even on the financial front, we went through a number of developments including rupee depreciation, a technology meltdown in 2000, restructuring of the biggest mutual fund in the country and the sharpest decline in markets in 2008," said Anish Zaveri, CEO of Mumbai-based Antique Broking. All these factors have failed to deter the growth momentum of Indian indices compared to other indices world wide. However, Hang Seng China and Russian index RTS have given better CAGR than their Indian counterparts. Both the indexes yielded CAGRs of around 19 per cent and 15.25 per cent respectively in the last 10 years. The basic cause for the momentum in the country's financial growth is the continued support from foreign institutional investors. "FIIs response to India has always been very favourable. Actually, the 5 years rule of NDA government included a lot pro-investment steps, which unfortunately couldn't be carried out in the next regime," said Antique Broking's Zaveri.