A global investor would have received handsome gains had he invested in the Indian stock markets in 2003.

India ranks amongst the top five equity markets across the globe in terms of returns offered to investors during the current calendar year.

If one had invested in companies that make up the Bombay Stock Exchange's Sensex or the National Stock Exchange's Nifty in January, the returns, as on November 25, would have been as high as 44 per cent and 43 per cent, respectively.

While Thailand tops the list with returns of 75 per cent, Nasdaq is a distant second with 46 per cent. Indonesia follows with returns of 45 per cent.

According to the capital market regulator, the Securities and Exchange Board of India, the volatility in Indian markets during the January-November period was also comparable with that in global markets.

While the simple average of daily volatility on a 30-day rolling basis was 1.15 per cent in Sensex and 1.19 per cent in Nifty, it was 1.23 per cent in Nasdaq and 1.1 per cent in the Thailand stock markets.

The volatility was comparatively higher in other markets like the Philippines (1.20 per cent), South Korea (1.22 per cent) and Japan (1.24 per cent).

The returns too were comparatively lower in these markets at 32 per cent, 22 per cent and 16 per cent, respectively.

The Dow Jones index in the United States went up by 17 per cent and the FTSE by 11 per cent, during the period.

In a presentation to the consultative committee on finance, Sebi had pointed out that the current rally was broadbased, with 15 sectors recording over 50 per cent increase in their stock prices between May and August this year.

The scrips of as many as 25 industries posted increases between 25 per cent and 50 per cent and nine sectors registered an increase of up to 25 per cent.

The regulator's analysis also sought to dispel fears about the nature of the current rally. It felt that the quality of players, products and market structure in the current rally was distinctly different from the 2000 rally.

The rally in 2000, Sebi said, was led by operators and concentrated in information technology, communication and the entertainment (ICE) sector.

The current rally, however, was broad-based covering the core sector and in stocks with strong fundamentals.

Sebi said among the emerging economies India attracted foreign institutional investment of only $5.65 billion (January-October 2003) compared with $7.5 billion inflows in South Korea and $13 billion in Taiwan.

The regulator, as a prudent measure, has amended the FII regulations directing the to report issuance of participatory notes. It is also undertaking a review of the policy on PNs and sub-accounts.