The Indian stock market has surpassed Hong Kong to become the fourth-largest equity market globally.
As of Monday's close, the combined value of shares listed on Indian exchanges reached USD 4.33 trillion, exceeding Hong Kong's USD 4.29 trillion. India's stock market capitalization crossed the USD 4 trillion mark for the first time on December 5, 2023, with substantial growth observed in the past four years.
The top three global stock markets are the United States, China, and Japan. Investors in Indian stocks have experienced a remarkable year, with the Sensex and Nifty gaining 17-18 percent on a cumulative basis in 2023, compared to a modest 3-4 percent each in 2022. In contrast, Hong Kong's Hang Seng Index faced a cumulative decline of 32-33 percent over the past year.
Factors contributing to India's robust market performance include a positive GDP growth forecast, manageable inflation levels, political stability at the central government level, and indications that central banks worldwide have concluded their monetary policy tightening. India's appeal as the fastest-growing major economy has attracted significant foreign portfolio investments (FPIs), with foreign investors becoming net buyers in the Indian stock market.
India's emergence as an alternative to China, coupled with its stable political environment and consumption-driven economy, has drawn fresh capital from global investors and companies.
Hong Kong has experienced a historic slump, marked by stringent anti-COVID-19 measures, regulatory crackdowns on corporations, a property-sector crisis, and geopolitical tensions with the West. This has led to a decline in new listings in Hong Kong, causing the Asian financial hub to lose its status as one of the world's busiest venues for initial public offerings (IPOs).
(With ANI inputs)
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