DELHI (Diya TV) — India’s ascent as a global economic powerhouse continues as its stock market capitalization surpasses Hong Kong’s for the first time, signaling a significant shift in global capital flows. Data compiled by Bloomberg reveals that the combined value of shares listed on Indian exchanges reached $4.33 trillion, outstripping Hong Kong’s $4.29 trillion, positioning India as the fourth-largest equity market worldwide.
This milestone underscores India’s attractiveness to investors, driven by robust growth prospects and policy reforms. Over the past four years, India’s equity market value has doubled, fueled by a burgeoning retail investor base and robust corporate earnings. The country’s stable political environment and consumption-driven economy have positioned it as a viable alternative to China, attracting fresh capital from global investors and companies alike.
In stark contrast, Hong Kong’s stock market has experienced a historic downturn, attributed to China’s stringent anti-Covid-19 measures, regulatory crackdowns, a property crisis, and geopolitical tensions. The erosion of China’s appeal as a growth engine has fueled India’s emergence as a preferred investment destination, with experts citing demographics and progressive reforms as key advantages.
While Chinese and Hong Kong equities suffer a severe rout, with market values plummeting by over $6 trillion since their 2021 peaks, India’s momentum remains strong. Foreign investors are redirecting funds to India, with pension and sovereign wealth managers increasingly favoring the South Asian nation.
Despite expectations of a turnaround in Chinese stocks, India’s favorable long-term prospects continue to attract significant investment. Overseas funds poured over $21 billion into Indian shares in 2023, supporting the country’s benchmark S&P BSE Sensex Index to achieve an eighth consecutive year of gains.
Strategists remain optimistic about India’s trajectory, with Goldman Sachs highlighting India as the best long-term investment opportunity based on survey results from its Global Strategy Conference.
