In a significant achievement for the South Asian country whose growth prospects and policy reforms have made it an investor darling, India’s stock market has surpassed Hong Kong’s for the first time.
As of Monday (January 22), the total value of shares listed on Indian exchanges was $4.33 trillion, compared to $4.29 trillion for Hong Kong. India is now the world’s fourth-largest equity market as a result. On December 5, its stock market capitalization exceeded $4 trillion for the first time, with roughly half of that amount coming from the previous four years.
India’s equity market has been thriving because of robust corporate earnings and a steadily expanding base of retail investors. Thanks to its stable political system and a consumption-driven economy that continues to grow at one of the fastest rates among major nations, the most populous country in the world has positioned itself as a viable alternative to China, drawing new investment from both international investors and companies.
Additionally, they set off an epic-scale stock market meltdown, with the value of all Chinese and Hong Kong stocks plunging below their 2021 peaks by more than $6 trillion. After years of being one of the busiest venues for initial public offerings worldwide, Hong Kong has seen a decline in new listings.