The Sensex has kissed the 15,000 mark, finally. Its steep rise is part of an astonishing bull run in emerging market equities, which have done far better than their peers in the developed world over the past few years.
The Indian market’s lunge towards a new record comes days another bit of news. It was reported that Bill Gates has been dethroned from his perch as the world’s richest man. Carlos Slim, a Mexican telecom tycoon, is now worth more than Gates. This is almost entirely due to the fact that the shares of Slim’s companies have soared in tandem with other emerging market stocks.
The Sensex’s new record and Slim’s rise to the top of the global rich boy list tell us something very interesting. The wealth gap between the rich and poor countries is narrowing—at least at the apex of the pyramid. And this in a year when the collective income of poor countries, in terms of purchasing power parity, has crossed that of the rich countries.