The increase in the Indian stock market was underpinned by a growing retail investor population, continuous inflows from FIIs (foreign institutional investors), good corporate earnings, and also strong fundamental macroeconomic indicators.
For the first time, the Indian stock market beats Hong Kong and takes fourth place among capitalization equity markets.
Bloomberg news sources estimated that the market cap of Hong Kong was $ 4.29 trillion, beating India’s market value at a slightly higher amount of around $ 4.33 trillion on Tuesday.
Currently, the US has by far the largest market capitalization of any country China is in second place and Japan is in third place.
For the very first time, India’s stock market capitalization hit 4 trillion dollars on 5th December last as about half of that amount was created over four years ever since Bloomberg reported.
Directed by the expanding band of retail investors, the relentless FII inflows, and healthy corporate earnings apart from solid domestic macroeconomic fundamentals growth in the Indian stock market was propelled.
In the last eight years, Indian markets have stabilized with gains and are set for further development.
Instead, Hong Kong’s Heng Seng has recorded a very remarkable four-year losing streak and the Shanghai Stock Exchange suffered its second straight year of losses. This year, the negative perceptions of China and Hong Kong have only intensified because there are no considerable economic stimuli.
Bloomberg reports that the country of India has been able to place itself as a replacement for China with fresh capital from global investors and companies as well, given its above-par political stability and fast-growing economy among consuming nations.
The Hang Seng China Enterprises Index, one of the indices that track some of the major and innovative firms in China is estimated to have dropped by approximately 13 percent this year.
The erosion in its role as the global growth champion has also been due to China’s draconian anti-COVID measures, regulatory hammer on corporations, real estate woes, and troubled relations with the West. From their 2021 tops, the Chinese and Hong Kong equities have fallen off the grid by over $6 trillion in total market value.
