Indian stock market makes it back into top 5 club across the world as Adani stocks revive
The Indian market had lost the spot to France in January, but now has regained this position led by a strong rebound in the Adani group shares from the recent rout.
PremiumIndian stock market reclaimed its position as the world’s fifth largest market amid a strong rally fueled by foreign fund inflows, improving domestic macros and a rebound in Adani group stocks. India’s market capitalisation surpassed France to reach $3.3 trillion as on Friday, Bloomberg reported.
The Indian market had lost the spot to France in January, but now has regained this position led by a strong rebound in the Adani group shares from the recent rout.
The rally in the Indian stock market also comes on the backdrop sustained foreign capital inflows driven by improved macro prospects.
The corporate earnings for the quarter ended March 2023 have been in line with the street estimates. Additionally, India’s GDP growth in the March quarter is also expected to remain robust above 7% with the forecast of normal monsoon further driving optimism.
Along with these factors, lower inflation and hopes of further pause in interest rate hikes by the Reserve Bank of India (RBI) have fuelled momentum in the domestic markets.
The Indian benchmark indices Sensex and Nifty have jumped 10% each from their recent low seen in mid-March amid improving sentiment.
Meanwhile, momentum in the market was further boosted by the recent rebound in Adani group stocks after it received a clean chit from the Supreme Court-appointed panel in the stock price manipulation case as alleged by US short seller Hindenburg Research.
The billionaire Gautam Adani-led Group’s 10 listed entities witnessed their market value rising by around $15 billion last week, Bloomberg reported.
Meanwhile, shares on Dalal Street continued the upward trend, with the Nifty Bank hitting record high level on Monday supported by a rally in financial heavyweights amid positive cues from global peers.
The Sensex rallied 344.69 points, or 0.55%, to 62,846.38, while the Nifty closed 99.30 points, or 0.54%, higher at 18,598.65.
The overall market capitalisation of BSE-listed firms rose to ₹283.8 lakh crore from ₹282.7 lakh crore in the previous session.
(With inputs from Bloomberg)
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