Indian stocks outperform on London Stock Exchange & AIM

Indian companies listed on the London Stock exchange and its junior exchange, AIM, have consistently outperformed the FTSE and AIM 100.
For the quarter ended June 2009, the index, which tracks the performance of Indian stocks on AIM and the main market in London, rose 76% from the start of the year and 72% from the beginning of April. This compares with a decline of 4% of the FTSE 100 for the year, and rise of 7% since the beginning of April. The AIM 100 has risen 34% from the beginning of this year, and 28% from the beginning of April.

It does not mean that Indian stocks have not seen severe drops in their share prices since the beginning of the recession. Sectorally, while property companies have lost their charm, infrastructure and energy companies have been better off this reflects a shift in investor interest in certain sectors.

According to Grant Thornton, which produces the India Watch tracker in conjunction with the London Stock Exchange, this performance illustrates that the downturn has not undermined the positive outlook for Indian companies, despite the occasional fracas with shareholders.

The India Watch Index covers Indian companies listed on AIM or the main market, including GDRs, and only includes companies domiciled in India.