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Boosted by Bombay - Indian LSE stocks triple in 2009

In 2009, the share prices of Indian companies listed on the London Stock Exchange (LSE) dramatically outperformed both the AIM All-Share and the FTSE 100 according to the latest India Watch, a quarterly review by the leading business and financial adviser Grant Thornton.

The India Watch index has soared by 212% in 2009, following a 23% rise in the final quarter of 2009. In comparison, the AIM All-Share only recorded gains of 66% in 2009, while the FTSE 100 has seen a modest 22% rise in the last twelve months.

"Indian stocks have soared leading our India Watch Index to end the year more than 3 times higher than it was at the start of 2009. This interest in London-listed Indian stocks parallels the enthusiasm for the Bombay Stock Exchange, where the Sensex gained 81% in 2009. While the Sensex benefited from US$18 billion of capital inflows by foreign funds, London-listed Indian stocks have been boosted by their Bombay-listed sector peers," commented Anuj Chande, Head of South Asia Group at Grant Thornton.

The index has also outperformed other indices in previous years: Since its inception in 2007, the India Watch price index has gained 57%. By contrast, the AIM All-Share lost 38% over the last two years, while the FTSE 100 recorded a 13% loss.

"Investor enthusiasm for Indian companies is further fanned by the country's unrivalled growth of gross domestic product, which is likely to amount to at least 7% for 2009/2010 in spite of the global economic downturn."

The best performing India Watch stocks in 2009 were Naya Bharat Property, OPG Power Ventures and Vedanta Resources with price increases of 251%, 338% and 327% respectively. The best performers vary dramatically in size: Vedanta Resources is the largest firm in India Watch with a market capitalization of £7.1 billion at the closing price of 2611 pence per share. OPG Power Ventures is in the mid range with a value of £258 million at the closing price of 90 pence per share, while Naya Bharat Property is at the lower end of the spectrum with its closing price of 24 pence per share translating to a market capitalisation of £21.4 million.

For further information, please contact:
Alex Wessendorff, Grant Thornton Press Office, T +44 (0)20 7728 2048, M +44 (0) 7983 990837, E Alex.Wessendorff@gtuk.com