India overtakes Hong Kong as world’s fourth-largest stock market by market capitalisation
- The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg.
India’s stock market has overtaken Hong Kong’s to rank as fourth-biggest equity market globally for the first time, Bloomberg reported.
The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg.
India’s stock market capitalization had crossed $4 trillion for the first time on December 5. The rally in the Indian stock market came on the back of a rapidly growing retail investor base, sustained inflows from foreign institutional investors (FII), strong corporate earnings and robust domestic macroeconomic fundamentals.
Moreover, India has positioned itself as an alternative to China, attracting fresh capital from global investors and companies alike, thanks to its stable political setup and a consumption-driven economy that remains among the fastest-growing of major nations, Bloomberg reported.
On the other hand, Hong Kong markets have slumped, where some of China’s most influential and innovative companies are listed. The total market value of Chinese and Hong Kong stocks has plunged by more than $6 trillion since their peaks in 2021.
Beijing’s stringent anti-Covid-19 curbs, regulatory crackdowns on corporations, a property-sector crisis and geopolitical tensions with the West have all combined to erode China’s appeal as the world’s growth engine, the Bloomberg report added.
The Asian financial hub is losing its status as one of the world’s busiest venues for initial public offerings (IPO) as new listings have dried up in Hong Kong.
Overseas funds poured more than $21 billion into Indian shares in 2023, helping the country’s benchmark S&P BSE Sensex Index cap an eighth consecutive year of gains.
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