Introduction

At $4.33 trillion, India’s stock market is now the fourth most valuable in the world, surpassing Hong Kong’s Hang Seng.

The strong economic position of India is highlighted by this landmark, which signifies the nation’s rise to prominence.

India

Market capitalizations of $50.86 trillion put the US stock market in first place, followed by China’s $8.44 trillion and Japan’s $6.36 trillion.

Background Thanks to a growing number of individual investors, steady funding from international institutions, strong corporate profits, and stable macroeconomic fundamentals at home, India’s market valuation surpassed $4 trillion on December 5.

The Indian stock market has seen tremendous expansion over the previous four years, culminating in eight years of increases.

The Reasons Behind India’s Economic Growth

• A Swell in Retail Investors: One important factor is the increasing number of retail investors.
• Attention all investors throughout the world: As a less volatile option to China, India is attracting new investment capital thanks to its consumer-driven economy and relatively stable government.

Similar Obstacles

The unfavorable mood towards China is reflected in Hong Kong’s Hang Seng, which has been losing ground for four years, while India is thriving.

The overall market value of Chinese and Hong Kong equities has taken a major hit due to China’s strict anti-COVID-19 policies, regulatory crackdowns, the real estate crisis, and geopolitical concerns, all of which have reduced its status as the world’s economic engine.