India Soars: Becomes World’s Fourth-Largest Stock Market, Overtakes Hong Kong

New Delhi: In a remarkable turn of events, India has outshone Hong Kong, claiming its spot as the world’s fourth-largest stock market. Recent data from Bloomberg reveals that the total value of shares listed on Indian exchanges has reached an impressive $4.33 trillion, surpassing Hong Kong’s $4.29 trillion.

This milestone marks India’s ascent to global prominence, making it a key player in the equity market. The stock market capitalization crossed the $4 trillion mark on December 5, and half of this growth occurred in just the past four years, according to the report.

So, why is India’s stock market booming? The answer lies in a combination of factors, including a stable political environment and a consumption-driven economy. Indian equities are riding high on the enthusiasm of a growing base of retail investors and robust corporate earnings. As China faces challenges, India emerges as an attractive alternative, drawing global capital and companies.

Ashish Gupta, Chief Investment Officer at Axis Mutual Fund in Mumbai, expresses optimism, stating that “India has all the right ingredients in place to set the growth momentum further.”

In stark contrast, Hong Kong has experienced a historic downturn, grappling with stringent anti-Covid-19 measures, regulatory crackdowns, a property-sector crisis, and geopolitical tensions with the West. This downturn has significantly impacted China’s appeal as a global growth engine, resulting in a substantial equities downturn. Chinese and Hong Kong stocks have collectively lost over $6 trillion in total market value since their peaks in 2021, according to the report.

As India’s stock market continues its upward trajectory, it not only signifies the country’s economic strength but also highlights the challenges faced by other global financial hubs. The dynamics of the global financial landscape are evolving, with India emerging as a compelling player in the world of stocks.