With a market capitalisation of $4.3 trillion, India has replaced Hong Kong ($4.29 trillion) as the fourth most valued country in the world, Bloomberg said. The data were as of Jan 22, the report said.
The global ranking by market cap is led by the US with a value of nearly $51 trillion, followed by China’s $8.5 trillion and Japan with $6.5 trillion.
Since dipping to a multi-year low in late-March 2020, the Indian market has been on a bull rally, backed by a host of global and domestic tailwinds. These include the world’s slow but definite shift towards a China-plus supply chain situation – meaning at least one alternative country that could supply manufacturing articles in which China had a near-monopoly. India is one of the main beneficiaries of this global shift, analysts say.
Second, the prolonged slowdown in the Chinese economy post-pandemic even as the Indian economy showed strong resilience, is now prompting international fund managers to increasingly allocate more funds to India.
On the domestic front, the economy is booming to be the fastest growing major economies in the world with strong growth in tax collections, reined-in inflation, good corporate earnings growth and a stable currency.
Since March 2020, while the sensex – the leading benchmark for the Indian market – has gone up two-and-half times, Hang Seng, the benchmark for the Hong Kong stock market, is down 33%. This huge outperformance backed by the strong growth of the economy and also listing of several large and small companies on BSE and NSE are now reflected in India’s market cap topping Hong Kong’s.
According to Suman Bannerjee, CIO, Hedonova, a Paris-based hedge fund, India’s ascent to the fourth position in the global stock market rankings eclipsing Hong Kong is a milestone that underscores the resilience and dynamism of India’s economic landscape. “As the nation forges ahead, investor confidence and opportunities converge, propelling the stock market to new heights. This achievement marks not only a numerical triumph but also signifies India’s emergence as a key player in the international financial arena.”
It’s also “a testament to the nation’s economic fortitude and signals a promising trajectory for investors navigating the diverse and vibrant landscape of the Indian stock market,” Bannerjee said.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
