Recently, Bloomberg reported that the Indian stock market has surpassed Hong Kong, becoming the world’s fourth-largest equity market. According to the report, as of Tuesday, if we calculate the market capitalisation of all listed companies in the Indian stock market, it amounts to $4.33 trillion, surpassing Hong Kong’s market capitalisation of $4.29 trillion.
Let’s delve into the performance of the Indian stock market in 2023 and understand the factors contributing to the growth of Indian companies.
What’s Happening?
On December 5, 2023, the Indian stock market achieved a market capitalisation of $4 trillion. The growth is attributed to increased participation of retail investors in the stock market, rising foreign institutional investments (FIIs) in India, companies showing robust earnings growth, and favourable domestic macroeconomic fundamentals.
Furthermore, according to Bloomberg’s report, India has positioned itself as an alternative to China, establishing stable governance. India’s consumption power has played a significant role in attracting foreign investors.
Global Stock Markets
When considering the world’s largest stock markets, the USA holds the first position, followed by China and Japan. Currently, India has become the world’s fourth-largest stock market.
As of now, the USA leads with a market cap of $50.86 trillion, followed by China with $8.44 trillion, Japan with $6.36 trillion, and India with a market cap of $4.33 trillion. Hong Kong has slipped to the fifth position with a market cap of $4.29 trillion due to China’s slowing economy.
The image provides a visual insight into the largest stock market worldwide.
How Did the Indian Stock Market Perform in 2023?
The year 2023 has been an excellent year for investors, with impressive returns from various segments like Nifty, Sensex, Mid-cap, and Small-cap.
Let’s take a look at the returns:
The image showcases the benchmark performance of the Indian stock market.
The image provides insight into the outstanding performance of some companies in 2023.
Global Tech giants are looking towards India for development, reducing dependence on China. Recent developments, such as Apple opening its first store and Foxconn increasing production in India, along with geopolitical tensions, position India as an alternative hub to China. These changes have affected China’s economy, resulting in a market decline and impacting Hong Kong’s market.
What’s in it for Investors?
Investors should note that past performance does not guarantee future returns. It’s essential for investors to learn from past trends and consider factors such as the economy, geopolitical events, and more.
Currently, HDFC Bank has reported below-expected results, leading to a market correction. Investors are anticipating the budget announcement on February 1, 2024, to understand its impact on the market.
What’s Next?
As mentioned in Money Control, analysts predict a possible rate cut by global central banks in 2024, which could be good news for investors. Additionally, according to the World Bank, the Indian economy might outperform the global economy. The upcoming general elections also hold significant importance for the stock market.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
