Updated, Jan. 23, 2024. 9.56 PM.
India’s stock market has overtaken Hong Kong to become the fourth-biggest equity market globally for the first time. As per data compiled by Bloomberg, the combined value of shares listed on Indian exchanges reached 4.33 trillion dollars as against 4.29 trillion dollars for Hong Kong.
India’s stock market capitalization had crossed four trillion dollar for the first time on 5th of last month. The rally in the Indian stock market came on the back of a rapidly growing retail investor base, sustained inflows from foreign institutional investors, strong corporate earnings and robust domestic macroeconomic fundamentals.
Indian stocks reached new highs in 2023 due to bullish investors and increased domestic participation. However, a recent correction followed a lower-than-expected earnings in HDFC Bank. Analysts believe that anticipated rate cuts by global central banks in 2024 could boost investor confidence, further fueling the Indian market rally. Investors are now anticipating the budget announcement on February 1.
In 2023, both Sensex and Nifty advanced 18.8 percent and 20 percent, respectively, while BSE MidCap and SmallCap jumped 45.5 percent and 47.5 percent, respectively. Among the top gainers, Tata Motors jumped 101 percent, Bajaj Auto advanced 88 percent, NTPC rose 87 percent, L&T gained 69 percent, while Coal India surged 67 percent.