That India and other emerging market economies are not only presently outpacing the developed countries in terms of global economic recovery but may also continue to do so in the near future, is evident from the fact that India happened to be the third best-performing market worldwide in 2009, after Russia and Brazil.

While a 111.6 percent return came the way of the investors who invested in the Russian market; the market in Brazil offered investors 82.7 percent; and the BSE Sensex reported 81 percent return for the investors.

The ‘smaller base effect’ and the government’s stimulus package helped the Sensex close the year at 17,464.81 points, as compared to the December 31, 2008 figures of 9,647. The Nifty too reported proportionate gains and closed the year at 5,201, against the year before figures of 2,959.

Talking about the noteworthy statistics of the most of the emerging markets, including India, Mehul Dedhia, associate vice-president at Sharekhan, said: “There are three major reasons for such a surge in the markets.”

Elaborating further, Dedhia said: “Firstly, the condition of global markets has improved and we are also witnessing huge inflows from foreign funds. Apart from that in the last two quarters, we also saw strong earnings growth. The major game changer was the general elections in which Congress-led UPA government came with the clean majority.”