“India Surpasses Hong Kong, Achieving Fourth Place in Global Stock Market Hierarchy”
In a remarkable achievement for India’s financial markets, the nation has overtaken Hong Kong to become the world’s fourth-largest stock market. Recent data compiled by Bloomberg reveals that the combined value of shares listed on Indian exchanges reached $4.33 trillion, surpassing Hong Kong’s $4.29 trillion as of Monday’s close.
In a remarkable achievement for India’s financial markets, the nation has overtaken Hong Kong to become the world’s fourth-largest stock market. Recent data compiled by Bloomberg reveals that the combined value of shares listed on Indian exchanges reached $4.33 trillion, surpassing Hong Kong’s $4.29 trillion as of Monday’s close.
India’s ascendancy in the global stock market rankings is a testament to the nation’s robust economic growth, investor-friendly policies, and significant policy reforms that have garnered attention from the investment community. The milestone follows India’s stock market capitalization crossing the $4 trillion mark on December 5, with half of that value added in the past four years.
The buoyancy in India’s equities can be attributed to several factors, including a rapidly expanding retail investor base and robust corporate earnings. As the world’s most populous country, India has positioned itself as a viable alternative to China, attracting substantial capital from global investors and companies. The stability of India’s political setup and a consumption-driven economy, ranking among the fastest-growing globally, further contribute to its appeal.
Ashish Gupta, Chief Investment Officer at Axis Mutual Fund in Mumbai, remarked, “India has all the right ingredients in place to set the growth momentum further.”
Meanwhile, Hong Kong has experienced a historic stock market slump, coinciding with a downturn in some of China’s most influential and innovative firms listed on its exchanges. Factors such as Beijing’s stringent anti-COVID-19 measures, regulatory crackdowns, a property-sector crisis, and geopolitical tensions with the West have collectively diminished China’s attractiveness as the world’s growth engine.
While some analysts anticipate a potential turnaround in the Chinese market, momentum currently favors India. The relentless rally in Indian stocks contrasts with a significant decline in the total market value of Chinese and Hong Kong stocks, plummeting by over $6 trillion since their peaks in 2021.
Foreign investors, once enamored with the China narrative, are redirecting their funds to India. Global pension and sovereign wealth managers are also showing a preference for India, according to a study by the Official Monetary and Financial Institutions Forum.
In 2023, overseas funds poured more than $21 billion into Indian shares, contributing to the eighth consecutive year of gains for the country’s benchmark S&P BSE Sensex Index. A recent survey from Goldman Sachs Group Inc. underscores the growing consensus that India represents the best long-term investment opportunity, further solidifying its position in the global financial landscape.
Sources By Agencies
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