India overtakes Hong Kong to become 4th-largest stock market

New Delhi, India – The Indian stock market has pipped Hong Kong to become the fourth-highest equity market globally, Bloomberg reported.

The combined value of shares listed on Indian exchanges reached $4.33tn as of Monday's close, versus $4.29tn for Hong Kong, according to data compiled by Bloomberg.

India's stock market capitalisation crossed $4tn for the first time on December 5, 2023, with about half of that reportedly coming in the past four years.

The top three stock markets are the US, China, and Japan.

Cumulatively, the past 12 months have been stellar for investors who parked their money in Indian stocks. Though there has been some turbulence, the calendar year 2023 gave handsome monetary dividends to stock market investors. In 2023 itself, Sensex and Nifty gained 17-18%, on a cumulative basis. They gained a mere 3-4% each in 2022.

Hong Kong's benchmark Hang Seng Index cumulatively declined 32-33% over the past year, data showed.

Firm GDP growth forecast, inflation at manageable levels, political stability at the central government level, and signs that the central banks the world over are done with their monetary policy tightening have painted a bright picture for India.

The strong inflow of funds from foreign portfolio investors lately also supported the stocks to march towards all-time highs. Notably, foreign portfolio investors have again trained their sight towards India, becoming net buyers in the country's stock market. In the process, it helped Indian benchmark stock indices taste their all-time highs recently.