India Overtakes Hong Kong to Become World’s Fourth-Largest Stock Market

India Overtakes Hong Kong to Become World's Fourth-Largest Stock Market

The Indian stock market’s projected value reached $4 trillion on December 5, marking a first for the market. To state, strong profits made by the corporate sector, slow but increasing rate of investors in India, regular operations by the foreign institutional investors (FII), and strong domestic macroeconomic fundamentals are all the factors that contributed to the Indian stock market’s recent surge.

By the end of Monday, reports indicated that the whole value of securities posted on Indian markets was $4.33 trillion, compared to an estimated $4.29 trillion for Hong Kong. India has established itself as an superior choice to China, which attracts new investment from businesses and foreign investors alike. This is especially true if we take into account the country’s consumption-driven economy and secure political structure, which are two of the main factors behind the fastest-growing major nations.

However, Hong Kong’s markets, which include some of China’s most significant and inventive enterprises, have collapsed. Hong Kong reached the top most of its success in the field of combined market capitalization between Hong Kong and Chinese equities but the former has decreased by more than $6 trillion due to Covid-19 implications. As fresh listings in Hong Kong have dried up, the Asian financial capital is losing its position as one of the busiest places in the world for initial public offers (IPOs).