India Emerges as World’s Fourth-Largest Stock Market

 

On 22nd January, the Indian stock market overtook that of Hong Kong to emerge as the world’s fourth-largest stock market, reported Bloomberg.

The value of all the stocks listed in the Indian market hit $4.33 trillion at the close of the trading day on Monday. For Hong Kong, the figure was $4.29 trillion.

 

Source: Bloomberg

It was only the last month that the stock market capitalisation of India hit $4 trillion for the first time on December 5th.

India has emerged as a strong market in the world due to a rapidly growing retail investor base and strong corporate earnings. Its consumption-driven economy remains among the fastest-growing of major nations. The country’s equity markets have gained for eight straight years.

As per another recent Bloomberg report, the first few days of 2024 saw 38 global IPO listings out of which 11 debuted in India itself.

Asia-Pacific led the charge, with 34 listings in the region.

In terms of nominal GDP, India is the world’s fifth-largest economy. The Indian economy is worth $3.7 trillion as of now, and the country dreams of becoming a $5 trillion economy by 2028.

 

Source: Bloomberg

India’s neighbouring rival China is experiencing a market downturn as regulatory crackdowns on corporations, a property-sector crisis and geopolitical tensions are contributing to a slump. However, market experts predict a recovery in its economy.

The Shanghai Stock Exchange saw its second consecutive year of losses. Hong Kong's Heng Seng declined for the fourth consecutive year.

The negative turn in the Chinese market has certainly affected the Hong Kong market too as there is pressure on American investors to sell their exposure to Chinese companies.

This U.S. market is quite strong now, thanks to lowered inflation and robust job opportunities. The S&P 500 rose by 25% the last year. The market in the U.S. is worth $50 trillion.

Four out of five largest stock markets are now located in Asia, with the U.S. being the largest market yet.