New Delhi, January 23 (ANI)
Indian bulls have charged past their Hong Kong counterparts, catapulting the nation's stock market to the coveted fourth position globally. This stellar achievement marks a historic milestone for India, showcasing its surging economic might and investor confidence.
Bloomberg data shows that as of Monday's closing, the total value of stocks listed on Indian exchanges was an astounding USD 4.33 trillion, surpassing the amount of USD 4.29 trillion held by Hong Kong. This achievement follows the December 5, 2023, first-ever crossing of the USD 4 trillion mark by the Indian stock market, with approximately half of this increase in the last four years.
India has had an incredible year in 2023, even if the US, China, and Japan are still the top three countries in the world. Investors in the stock market who trusted Indian equities during the last year were handsomely rewarded, as the Sensex and Nifty indexes both saw remarkable increases of 17–18%. This substantial growth contrasts sharply with the small 3-4% gain that was observed in 2022.
Meanwhile, Hong Kong's benchmark Hang Seng Index painted a starkly different picture, plummeting by a staggering 32-33% over the past year. This dramatic fall can be attributed to a confluence of factors, including stringent COVID-19 restrictions, regulatory crackdowns on businesses, a crisis in the property sector, and escalating geopolitical tensions with the West.
India's ascent to the fourth position isn't solely driven by strong domestic performance. The nation's robust GDP growth projections, manageable inflation levels, stable central government, and indications from global central banks about easing monetary tightening have painted a rosy picture for the future. This optimistic outlook and India's status as the fastest-growing major economy have made it a magnet for foreign portfolio investors (FPIs). In fact, FPIs have become net buyers in the Indian stock market, propelling benchmark indices to record highs.
With its burgeoning population, stable political environment, and consumption-driven economy, India is increasingly seen as a viable alternative to China. This, coupled with the recent slump in Hong Kong, has fueled a rush of fresh capital from global investors and companies eager to tap into India's immense potential.
As Indian stocks scale new heights, Hong Kong struggles to regain its footing. The once-thriving Asian financial hub, known for its vibrant IPO scene, has witnessed a significant decline in new listings, further adding to its woes.
India's ascent to the fourth position in the global stock market ranking is a testament to the nation's economic resilience and burgeoning investor confidence. With its future looking bright, India is poised to leave its mark on the global economic landscape in the years to come.