New India Investment Trust performing in line with index

The company’s mid-market share price was 24.4% higher at 380.75p, while its net asset value per share rose to 28.1% to 439.98p.

Its discount to net asset value widened to 13.5%, compared to 10.9% at the same time last year.

The rupee to sterling exchange rate also changed, with the Indian currency gaining strength at INR 86.5 per £1, compared to INR 99.4 at the same time in 2015, a 13% shift.

Share price total return improved 21.5% during the period, and net asset value was also 21.5% higher, compared to a sterling-adjusted MSCI India Index performance of 21.6%.

“Following the sustained period of inflows in the wake of Mr Modi's 2014 election win and the recent rise in the market, valuations have started to look expensive and not always aligned with company fundamentals,” said chairman Hasan Askari on the firm’s outlook.

“In addition, the result of the recent US presidential election, and the possibility of an expansion of fiscal policy there, has created further market uncertainty.”

Askari said as a result, the market's recent pause for breath was somewhat welcome to the board.

“Meanwhile, the country's excellent growth potential, underpinned by solid demographic, political and economic foundations, as well as abundant world-class businesses, make it a market worth sticking with for the long haul.

“Any short-term volatility merely provides an opportunity for astute investors to replenish high-quality names.”