The domestic market did well compared to even developed markets like the US, Japan and Hong Kong. In July, Bombay Stock Exchange (BSE) 100 Index (National Index) increased by 11 per cent from 1,791 to 1,988.06, S&P CNX Nifty at National Stock Exchange (NSE) was up by 10.28 per cent to 1,310.15 from 1,188 at the beginning of the month.

While BSE Sensex, which touched its all-time high of 4,810 on July 15, gained 9.69 per cent to 4,542.34 from 4,141 points during the month. In comparison, Bangkok set index dropped from 552 to 456.81 points, a decline of 17.24 per cent, Jakarta (Indonesia) Stock Exchange index dropped by 9.68 per cent from 662 to 597.87 points.

The other markets in the region, Manila composite index lost 5.76 per cent and closed at2,342.81 over the month's opening level of 2,486 points and Malaysia's Kuala Lumpur composite index fell by 5.21 per cent to 768.69 from 811 points at the beginning of July.

On the good performance of the Indian equity markets, HSBC Securities in its India-100 report said, "Indian economy has shown strong resilience in recent times and has outperformed our earlier expectations."

It said the large domestic economy coupled with a consumption-oriented demographic structure appears to have an in-built momentum of its own. This has held it in good stand in the Asian crisis.

Apart from outperforming its counterparts in the region, Indian markets did well compared to developed markets like US, Japan, Hong Kong and Singapore.The Dow Jones industrial average declined marginally to 10,655.15 as against 10,731 points while the Standard & Poor (S&P) 500 index dropped by 3.22 per cent from 1,373 to 1,328.72 points.

On Nasdaq, the index fell by 1.76 per cent to 2,638.49 from 2,686. While the Nikkei index of Japan,the only market after India to give positive returns in July, increased by 1.89 per cent to 17,861.86 from 17,530, in Hong Kong, the Hangseng index declined by 2.53 per cent from 13,530 to 13,186.86.

Singapore's Strait Times index was down by 1.06 per cent to 2,145 from 2,168 at the beginning of July. The month was also important for the Indian markets as the oldest index BSE-30 (Sensex) reached its all-time high of 4,810.33 points, breaking the previous record level of 4,643 touched on September 11, 1994.