Indian equity markets saw a strong recovery in 2009, with the key Sensex index gaining over 80% on the year to close at 17,464.81 points. This was India's best annual performance since 1999, rebounding sharply from a 52% loss in 2008. The gains were fueled by the Indian economy's resilience during the global slowdown, strong corporate earnings, and foreign institutional investors pumping $17.46 billion into Indian stock markets for the year after withdrawing funds in 2008. Some sectors like metals and automobiles significantly outperformed the overall market. Looking ahead, the outlook for 2010 remains positive due to factors like low interest rates and strong domestic demand sustaining India's growth.