India Pips Hong Kong, Becomes 4th Largest Stock Market in The World


by Sandip Das on 23 January 2024,  3 min read

India Pips Hong Kong, Becomes 4th Largest Stock Market in The World - MyDhanush Blogs by Ashika

As of January 22, India has surpassed Hong Kong to become the world’s fourth-largest stock market in terms of market capitalization. On Tuesday, India’s market capitalization stood at $4.33 trillion, slightly ahead of Hong Kong’s $4.29 trillion, as reported by Bloomberg. The United States continues to lead globally with a market capitalization of $50.86 trillion. China holds the position with a market capitalization of $8.44 trillion. Japan follows with a market cap of $6.36 trillion.

The downturn in the Hong Kong stock markets is largely due to the economic slowdown in China, coupled with pressure on American investors to reduce their investments in Chinese companies. This is in stark contrast to the robust performance of the US market, buoyed by easing inflation and a strong job market. In 2023, the S&P 500 index in the US witnessed a significant rise of 25 percent. It reflects the divergent trajectories of the world’s two largest economies.

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In India, the equity market has been experiencing a surge. It is driven by a rapidly expanding investor base, consistent inflows from foreign institutional investors (FIIs), solid corporate earnings, and strong domestic macroeconomic fundamentals.

According to Bloomberg, there is a growing perception of India as a viable alternative to China in the global market.
This perspective has led to a growing influx of capital from global investors and companies into the Indian market, further boosting its position in the global financial landscape.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions. Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

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