The Sensex gained 9.2 per cent during the first half of 2019. The gains were aided by a dovish stance taken by most central banks amid recession fears. The yield on the 10-year US Treasury and the domestic 10-year G-Sec cooled off. FPI flows remained strong, even as domestic MFs applied brakes on their investment amid moderating investor inflows. India underperformed developed markets and some EM peers during the first half.

The small- and mid-cap indices delivered negative returns. The divergence in performance between large-caps and mid- and small-caps was less stark, compared to last year. Trade tension and deteriorating economic growth outlook remained major concerns globally.

The spate of corporate defaults kept investors on tenterhooks. In the second half of 2019, most analysts are expecting muted returns.