India’s equity market has achieved a significant feat by surpassing the market capitalization of Hong Kong’s stock exchange. Over the past eight years, the Indian stock market has witnessed continuous expansion, resulting in a market capitalization of $4.33 trillion, slightly ahead of Hong Kong’s $4.29 trillion. This remarkable growth has positioned India’s stock market prominently on the global stage.
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While the United States (U.S.) remains the dominant force in global stock markets with a market capitalization of $50.78 trillion, China holds the second-largest stock market with $8.44 trillion, followed by Japan at $6.36 trillion.
Favorable macroeconomic conditions
The rise of India’s stock market can be attributed to two key factors: a growing base of retail investors and favorable macroeconomic conditions that have supported eight consecutive years of gains. These factors have contributed to the impressive performance of Indian stocks over the past year.
In 2023 alone, the Sensex and Nifty indices recorded a cumulative gain of 17-18 percent, while they only gained 3-4 percent each in 2022. In contrast, Hong Kong’s Hang Seng Index experienced a cumulative decline of 32-33 percent over the same period, as indicated by data.
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