India overtakes Hong Kong to become world’s 4th largest stock market

India’s stock market has outperformed Hong Kong for the first time, with the total value of shares listed on Indian exchanges reaching $4.33 trillion as of Monday’s close, surpassing Hong Kong’s $4.29 trillion, according to Bloomberg data. . This makes India the fourth largest stock market in the world.

The market capitalization of stocks exceeded $4 trillion on December 5, and about half of that was gained in the past four years, the report added.

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Why is the Indian stock market growing so fast?

“Stable political environment and consumption-driven economy”

Indian stocks are soaring, driven by the expansion of the individual investor base and solid corporate profits. According to the report, India has established itself as a viable alternative to China with a stable political environment and the world’s fastest growing consumption-driven economy, attracting global capital and businesses. It’s attracting.

Ashish Gupta, chief investment officer (CIO) of Axis Mutual Fund in Mumbai, expressed optimism: “India has all the right ingredients to further increase its growth momentum.” .

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“China’s attractiveness as a global growth engine has declined.”

This upward trajectory for Indian stocks is in sharp contrast to Hong Kong, which has experienced a historic downturn. The report said factors contributing to Hong Kong’s decline include Beijing’s strict coronavirus measures, a crackdown by regulators, a crisis in the real estate sector and geopolitical tensions with Western countries.

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This has reduced China’s attractiveness as a global growth engine, resulting in a significant decline in stock prices, with Chinese and Hong Kong stocks losing more than $6 trillion in market capitalization since their peak in 2021, the report said. Says. Amid the turmoil, Hong Kong’s role as a leading hub for initial public offerings has diminished, he added.