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Indian Stock Market Secures Fourth-Highest Global Equity Market Position

  • 24 Jan 2024

In a noteworthy development, the Indian stock market has surpassed Hong Kong, securing its position as the fourth-highest equity market globally, according to a Bloomberg report.

Key Points

  • Market Value Overtakes Hong Kong: The combined value of shares listed on Indian exchanges reached USD 4.33 trillion, surpassing Hong Kong's USD 4.29 trillion, marking India's ascent to the fourth-highest global equity market.
  • Landmark Crossing of USD 4 Trillion: India's stock market capitalization exceeded USD 4 trillion for the first time on December 5, 2023, with approximately half of this achievement occurring in the past four years.
  • Global Rankings: The top three global equity markets are currently held by the U.S., China, and Japan.
  • Stellar Performance in 2023: Despite some turbulence, the past 12 months proved to be exceptional for Indian stock market investors. In 2023 alone, Sensex and Nifty recorded gains of 17-18%, a significant contrast to the modest 3-4% gains in 2022.
  • Factors Driving Growth: Factors such as robust GDP growth forecasts, manageable inflation levels, political stability at the central government level, and indications of global central banks concluding monetary policy tightening have contributed to India's positive economic outlook.
  • Foreign Portfolio Investment (FPI) Inflow: The influx of funds from foreign portfolio investors (FPIs) has been a driving force behind India's stock market reaching all-time highs.
  • FPIs, once again becoming net buyers, have contributed to the impressive performance of Indian benchmark stock indices.
  • India as an Economic Alternative: With a stable political setup and a consumption-driven economy among the fastest-growing globally, India has positioned itself as an attractive alternative to China
  • Impact on Hong Kong's IPO Scene: Hong Kong has experienced a decline in new listings, losing its status as one of the world's busiest venues for initial public offerings (IPOs), according to the news report.