Indian stock market surpassed Hong Kong to become the fourth largest equity market for the first time even as domestic indices fell 1.5 per cent on Tuesday. The combined value of listed shares on Indian exchanges stood at $4.33 trillion on Monday compared to $4.29 trillion for Hong Kong, according to a Bloomberg report. The US, China and Japan are the top stock markets in the world. BSE’s market capitalisation was Rs 366 lakh crore on Tuesday. Hong Kong’s fall was mainly due to an eroding China appeal and its lost nearly 36 per cent from the peak level. A significant trend in global economic growth now is the underperformance of China and the outperformance of India, according to analysts. “Since the important Chinese stocks listed in Hong Kong have crashed, the Hang Seng index is near a 19-year low. This trend is likely to continue since the prospects for the Chinese economy and stock market appear bleak for now. However, if the Chinese economy stages a comeback the Chinese stocks will bounce back since their valuations are very low,” said an analyst. On the other hand, Indian stock markets rallied by 20 per cent in 2023 amid higher foreign inflows and growth prospects. “This momentous milestone 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,” said Suman Bannerjee, CIO, Hedonova, a Paris Based hedge fund. “This achievement marks not only a numerical triumph but also signifies India’s emergence as a key player in the international financial arena. It is 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,” he said.
