There is no question that global markets are booming and India is no different, it’s booming stock market has outpaced Hong Kong’s, becoming the fourth-largest stock market globally. Bloomberg reported that the total value of shares on Indian exchanges reached $4.33 trillion at the close of Monday’s trading session, surpassing Hong Kong’s $4.29 trillion.
This achievement underscores India’s economic prowess and the significant growth witnessed in its stock market in recent years. India crossed the $4 trillion mark on December 5, 2023 and half of this value has been accrued in the past four years alone.
Several factors contribute to India’s impressive stock market performance. The market has experienced an influx of retail investors, bolstered by strong corporate earnings. Additionally, India’s population surpassed China’s last year, positioning the country for robust economic growth and attracting substantial foreign investment.
Foreign investors have shown confidence in India, with over $21 billion flowing into Indian stocks in the previous year. The S&P BSE Sensex, a benchmark index tracking Indian stocks, celebrated an eighth consecutive year of gains, reflecting the market’s resilience and attractiveness.
Meanwhile, challenges faced by the Chinese economy, including a downturn and a property market crash, have prompted foreign investors to redirect funds to alternative markets. The combined market value loss of mainland Chinese and Hong Kong equities has reached $6.3 trillion since 2021. The Hang Seng Index, a benchmark for Hong Kong stocks, experienced a roughly 30% decline over the past year.
The shift in the global economic landscape, coupled with India’s economic vibrancy, has contributed to closing the gap between the Indian and Hong Kong stock markets. The recent surge in India’s stock market is a testament to its appeal to investors seeking opportunities amid changing global dynamics.
The rise of India’s stock market to the fourth position globally reflects not only the country’s economic strength but also the resilience and adaptability of its financial ecosystem. As India continues to position itself as a key player in the global economy, investors and market participants will be closely monitoring its trajectory for further opportunities and developments.