India’s Stock Market Achieves Historic Milestone, Overtakes Hong Kong

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India's Stock Market Achieves Historic Milestone, Overtakes Hong Kong

Indian stock market overtakes Hong Kong as world’s fourth largest stock market

The wave of joy in India’s stock market has drawn the attention of investors and traders. The National Stock Exchange of India Limited has surpassed the position of Hong Kong globally and overtakes the 4th position. It is the first time, India’s stock market has surpassed other Asian stock markets for the first time. This declaration was made after the data shared by the media outlet which showcased the combined value of shares marked on Indian exchanges. As per data, after the close of Monday’s market, the combined value of India’s stock market reached $4.33 trillion as compared to Hong Kong’s stock market which was reported at $4.29 trillion.  

This news has caused a stir in the equity market of India as well as Hong Kong. It is worth noting that, last year, on 5th December, for the first time, India’s stock market capitalization crossed $4 trillion. This capitalization has come in the last 4 years which reflects the rapid increase in India’s stock market. The top three positions of the world’s largest equity markets are held by the United States, China and then Japan. It is the biggest achievement for India’s stock market and traders are hoping to surpass the position of Japan. It is worth noting that the past 12 months have been wonderful for traders and investors who invest their money in the stocks of India. 

This achievement has come after the rapidly increasing retail investor base, sustained inflows from foreign institutional investors (FII), robust domestic macroeconomic fundamentals, and strong corporate earnings. With the 4th position as the largest stock market in the world, India has marked itself as a choice to India which will surely draw the attention of fresh capital from the side of investors and firms from all across the world. All the credit goes to the stable political set-up of the most populous country. It is worth noting that, the achievement of India’s stock market is showing economic growth in the nation and remains in the race of the fastest-growing nations. 

After learning the new position of India’s stock market globally, The chief investment officer at Axis Mutual Fund in India, Ashish Gupta states that “India has all the right ingredients in place to set the growth momentum further.” This statement indicates that in the upcoming year, the economic growth of the nation will be increased in all sectors. The reports further added that, in the last 12 months, Nifty and Sensex gained 17-18%, on an incremental basis. In 2022, both stocks reported only 3-4% growth each which showcases the huge difference in both years. 

On one side, India’s stock market set a new benchmark for itself and other foreign stock markets and on the other hand, the benchmark of Hong Kong reported a decline in the Hang Seng Index nearly 32-33 percent over the last year as mentioned in the data of Bloomberg. Hong Kong markets have showcased a decline in the list of the most influential and innovative companies in China. The total market value of Hong Kong and Chinese stocks has fallen by more than $6 trillion. As per the reports, rigorous anti-Covid 19 curbs, a property-sector crisis, regulatory crackdowns on corporations and geopolitical tensions from the side of the West have all together eroded the appeal of China as the growth engine of the world.

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