India’s BSE Becomes 4th Largest Stock Exchange In The World

India’s stock market has recently achieved a major milestone, surpassing Hong Kong’s market in terms of total value. 

As of the latest Bloomberg report, the total worth of all shares on Indian stock exchanges is now $4.33 trillion, slightly more than Hong Kong’s $4.29 trillion. 

This is the first time India has climbed to the fourth position in the global ranking of equity markets. Last month, India’s NSE also surpassed the Hong Kong Stock Exchange and became the world’s 7th largest stock exchange.

This significant growth in India’s stock market value, which first crossed the $4 trillion mark on December 5, is the result of several factors. 

A growing number of retail investors in India, continued investment from foreign institutions, strong company profits, and India’s solid economic fundamentals have all contributed to this rally.

India has also become a favorable destination for global investors and businesses, presenting itself as a viable alternative to China. 

This shift is partly because India offers political stability and has one of the fastest-growing economies in the world, driven largely by domestic consumption.

Also Read: Hero Motocorp Set To Unveil The Hero Mavrick 440 Tomorrow

Meanwhile, Hong Kong’s stock market has been facing challenges. Listed Chinese companies, which are a major part of Hong Kong’s market, have seen a decrease in their total value by more than $6 trillion since their high points in 2021. 

Factors like China’s strict COVID-19 policies, regulatory actions against companies, a crisis in the property sector, and tensions with Western countries have reduced China’s attractiveness as a global economic powerhouse.

Hong Kong, once a top spot for new company listings, is now experiencing a slowdown in this area. In contrast, India has seen a significant influx of foreign investment into its stock market, with over $21 billion invested in 2023. This has contributed to the S&P BSE Sensex Index, showing gains for 8 years consistently.

India’s economic growth is strong, inflation is under control, and political stability at the central government level is evident. 

These factors, along with a global trend of easing monetary policies, have created a positive environment for India’s economy and stock market. 

Foreign investors are increasingly interested in India’s market, contributing to recent record highs in Indian stock indices.