India’s stock market secures 4th position, surpasses Hong Kong

India’s stock market has surpassed Hong Kong’s, securing the fourth position in global equity markets for the first time. As of Monday’s closing, the combined value of shares listed on Indian exchanges reached US$ 4.33 trillion, exceeding Hong Kong’s US$ 4.29 trillion, based on data compiled by Bloomberg.

The milestone of crossing the US$ 4 trillion mark in stock market capitalisation was achieved by India on December 5, 2023. The surge in the Indian stock market can be attributed to a rapidly expanding retail investor base, continuous inflows from foreign institutional investors (FII), strong corporate earnings, and robust domestic macroeconomic fundamentals.

Additionally, India has emerged as an attractive alternative to China, attracting fresh capital from global investors and companies. This is attributed to India’s stable political environment and a consumption-driven economy that continues to be among the fastest-growing among major nations.

Conversely, Hong Kong’s markets have experienced a downturn, particularly for some of China’s most influential and innovative companies listed there. The total market value of Chinese and Hong Kong stocks has declined by over US$ 6 trillion since their peaks in 2021. A Bloomberg report highlights that Beijing’s strict anti-COVID-19 measures, regulatory crackdowns on corporations, a crisis in the property sector, and geopolitical tensions with the West have collectively diminished China’s appeal as the world’s growth engine.

Furthermore, Hong Kong is witnessing declining status as one of the world’s busiest venues for IPOs, with new listings drying up in the Asian financial hub.

Source: Mint