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Sensex H1 performance

July 4, 2010

India’s benchmark stock index did reasonably well in the first half of 2010 as compared to its emerging market peers. The Sensex gained 1.4 percent during the period, and outperformed China’s Shanghai Composite Index and Brazil’s Bovespa which declined 9.6 percent and 26.8 percent respectively.

Shares in Reliance Industries, India’s top listed firm which has the heaviest weight in the index, barely changed during the period, but a Supreme Court ruling on a gas dispute and Ambani brothers reconciliation kept the company in focus.

Banking stocks performed well during the period, with the sectoral Bankex posting gains of more than 7 percent. Shares in SBI, India’s largest lender rose marginally, but private lender HDFC Bank jumped 12.6 percent during the period.

Among other sectors, oil & gas index rose 3.85 percent whereas the realty index was battered and posted losses of 17 percent.

Foreign funds have pumped in $6.7 billion in Indian equities so far in 2010, after investing a record $17.5 billion in 2009.

Rakesh Rawal, head of private wealth management at Anand Rathi said that if things turn better overseas, he expects the Sensex to touch 21,000 (points) by the year

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