India Surpasses Hong Kong, Emerges as World’s Fourth-Largest Stock Market; U.S. Takes the Lead
The Indian stock market has recently secured its position as the fourth largest in the world, surpassing the Hong Kong stock market. According to Bloomberg data, the total market capitalization of stocks listed on the Indian stock market has reached $4.33 trillion, surpassing Hong Kong’s $4.29 trillion.
Global Stock Market Rankings and Trends
Currently, the United States holds the title for the largest market globally, with a market capitalization of $50.86 trillion. China follows in second place with $8.44 trillion, and Japan is third with a market cap of $6.36 trillion.
Decline in Hong Kong’s Hang Seng and China’s Market
Hong Kong’s Hang Seng has experienced a decline for the fourth consecutive year, while China’s Shanghai Stock Exchange has faced its second straight year of decrease. Various factors, including Beijing’s strict Covid-19 restrictions and geopolitical tensions, contribute to China’s market decline, while the Indian stock market continues to achieve new highs.
Indian Stock Market Crosses $4 Trillion Milestone
On November 29, 2023, the market cap of the Indian stock market surpassed $4 trillion for the first time, reaching approximately Rs 333 trillion. This milestone reflects continuous growth, driven by factors such as strong pre-election sentiment, improving macroeconomic conditions, and expectations of interest rate cuts.
Historic Growth of the Indian Stock Market
The Indian equity market has been bullish, experiencing a boom for the eighth consecutive year. In May 2021, it reached $3 trillion, doubling its market cap from $1 trillion in May 2007 to $2 trillion in July 2017, and now standing as the fourth largest market at $4.33 trillion.
Positive Performance in 2023
In 2023, the Sensex rose by over 18%, and Nifty increased by almost 20%. Additionally, BSE Midcap and Smallcap demonstrated impressive returns, with 45.5% and 47.5%, respectively.
Current Market Situation
As of January 23, the stock market initially rose, but a subsequent decline is observed. Sensex is trading at 71,100, down over 300 points, and Nifty has fallen by over 100 points, trading at 21,450 at 12 noon.
