INDIA'S STOCK MARKET ROCKETS TO FOURTH PLACE. DETHRONING HONG KONG

INDIA'S STOCK MARKET ROCKETS T0 FOURTH PLACE, DETHRONING HONG KONG

In a significant financial development, the Indian stock market has surpassed Hong Kong, securing the fourth position among global equity markets, as reported by Bloomberg. The combined value of shares listed on Indian exchanges reached an impressive USD 4.33 trillion, outpacing Hong Kong’s market, which stood at USD 4.29 trillion based on data compiled by Bloomberg as of Monday’s close.

This milestone comes on the heels of India’s stock market capitalization crossing the USD 4 trillion mark on December 5, 2023, with approximately half of this growth occurring in the last four years. The top three global stock markets continue to be dominated by the U.S., China, and Japan.

Investors in the Indian stock market have witnessed a stellar performance over the past 12 months. Despite some turbulence, the calendar year 2023 proved lucrative, with the Sensex and Nifty gaining an impressive 17-18% on a cumulative basis. In contrast, Hong Kong’s benchmark Hang Seng Index faced a cumulative decline of 32-33% over the same period.

Several factors contribute to India’s robust stock market performance, including a forecasted strong GDP growth, manageable inflation levels, political stability at the central government level, and indications that central banks globally have completed their monetary policy tightening. Foreign portfolio investors (FPIs) have also played a crucial role, injecting substantial funds into the Indian stock market and helping benchmark indices reach all-time highs.