According to Bloomberg, the India surpasses Hong Kong as Indian stock market has surpassed Hong Kong to become the world’s fourth-largest equity market.
Bloomberg data shows that shares listed on Indian exchanges were worth USD 4.33 trillion as of Monday’s close, compared to USD 4.29 trillion in Hong Kong.
In the past four years, India’s stock market capitalization has surpassed USD 4 trillion for the first time.
US, Chinese, and Japanese stock markets are the top three.
For investors who parked their money in Indian stocks, the past 12 months have been stellar. It was a year of monetary dividends for stock market investors in 2023, despite some turbulence. The Sensex and Nifty gained 17-18 percent cumulatively in 2023. They gained just 3-4 percent each in 2022.
Over the past year, Hong Kong’s benchmark Hang Seng Index has declined 32-33 percent.
Inflation levels at manageable levels, political stability at the government level, and signs that the world’s central banks are done tightening their monetary policy have painted a bright picture for India – the fastest-growing major economy, according to many agencies.
Stocks have also been marching towards all-time highs thanks to the strong inflow of funds from foreign portfolio investors (FPIs). The Indian stock market has seen foreign portfolio investors again turn their attention to it, becoming net buyers. As a result, Indian benchmark stock indices have recently hit their all-time highs.
Due to its stable political setup and a consumption-driven economy that remains among the fastest-growing of major nations, India, which became the world’s most populous country last year, has emerged as a viable alternative to China and is attracting fresh capital from global investors and companies.
The rally in Indian stocks coincided with a historic slump in Hong Kong, where many of China’s most innovative and influential companies are listed.
A news report indicates that China’s appeal as the world’s growth engine has been eroded by anti-COVID-19 curbs, corporate regulation crackdowns, and a property crisis.
Hong Kong has lost its position as one of the world’s busiest venues for initial public offerings (IPOs) due to the lack of new listings.