New Delhi: According to a Bloomberg report, the Indian stock market has overtaken Hong Kong to become the fourth largest equity market globally.
The top three stock markets in the world are the US, China and Japan.
Indian Stock Market:
The Indian stock market has overtaken Hong Kong’s for the first time, with the total value of shares listed on Indian exchanges reaching $4.33 trillion as of Monday’s close, surpassing Hong Kong’s $4.29 trillion, according to Bloomberg data. This makes India the fourth largest equity market in the world.
Earlier, India’s stock market capitalization crossed US$4 trillion for the first time on December 5, 2023, with almost half of this gain coming in the last four years.
Overall, the last 12 months have been great for investors who have put their money into Indian stocks. Although there has been some turmoil, the calendar year 2023 delivered good monetary dividends to stock market investors.
In 2023 itself, Sensex and Nifty increased by 17-18 percent on a cumulative basis. Each of them grows by only 3-4 per cent in 2022. Hong Kong’s benchmark Hang Seng index has fallen 32-33 percent cumulatively over the past year, the data showed.
Reasons for the rapid growth of Indian stock market:
Strong inflow of funds from foreign portfolio investors (FPIs) recently also helped stocks rise towards all-time highs. In particular, foreign portfolio investors have again turned their attention towards India.
India, which became the most populous country last year, has positioned itself as an alternative to China, attracting new capital from global investors and companies, thanks to its stable political system and consumption-driven economy. Which remains one of the fastest growing major economies.
New listings have stalled in Hong Kong, according to news reports, with the Asian financial hub losing its position as one of the world’s busiest locations for initial public offerings (IPOs).
The Indian stock market has overtaken Hong Kong’s for the first time, with the total value of shares listed on Indian exchanges reaching $4.33 trillion as of Monday’s close, surpassing Hong Kong’s $4.29 trillion, according to Bloomberg data. This makes India the fourth largest equity market in the world.
Indian equities are surging on the back of a growing base of retail investors and strong corporate earnings. According to the report, India presents itself as a viable alternative to China, attracting global capital and companies due to its stable political environment and the fastest growing consumption-driven economy globally.
This has reduced China’s appeal as a global growth engine, resulting in a sharp decline in equities, according to the report, with Chinese and Hong Kong stocks losing more than $6 trillion in total market value since their 2021 peak. There has been a decline. It said Hong Kong’s role as a major center for initial public offerings has diminished amid the turmoil.
