India Surpasses Hong Kong to Claim Fourth Spot in Global Stock Markets: In a significant development, India’s stock market has surpassed Hong Kong’s, securing the fourth position in the global equity market rankings for the first time, according to a Bloomberg report.
As of Monday’s closing, the collective value of shares listed on Indian exchanges reached $4.33 trillion, edging past Hong Kong’s $4.29 trillion, as per Bloomberg’s compiled data.
India achieved the milestone of crossing $4 trillion in stock market capitalization on December 5. The surge in India’s stock market is attributed to factors such as a rapidly expanding retail investor base, consistent inflows from foreign institutional investors (FIIs), robust corporate earnings, and strong domestic macroeconomic fundamentals.
Furthermore, India has emerged as a compelling alternative to China, drawing fresh capital from global investors and companies. The country’s stable political environment and a consumption-driven economy, among the fastest-growing globally, contribute to its attractiveness, as reported by Bloomberg.
Conversely, Hong Kong’s markets have faced a downturn, impacting some of China’s most influential and innovative companies listed there. The total market value of Chinese and Hong Kong stocks has witnessed a decline of over $6 trillion since reaching their peaks in 2021.
Various factors, including Beijing’s stringent 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, according to the Bloomberg report. Hong Kong, traditionally known as one of the world’s busiest venues for initial public offerings (IPOs), is experiencing a decline in this status as new listings have dwindled.
In contrast, overseas funds have injected over $21 billion into Indian shares in 2023, contributing to the benchmark S&P BSE Sensex Index’s eighth consecutive year of gains. This shift in global investment dynamics underscores India’s rising prominence in the international financial landscape.