India's stock market hits $4 trillion milestone, gains surpass Hong Kong 

India's stock market surpassed the $4 trillion market value for the first time on Tuesday, marking a significant accomplishment for the world's fifth-largest equity market, narrowing the gap with Hong Kong, which has experienced a notable decline.

According to Bloomberg, the market capitalisation of companies listed on India's exchanges has surged by $1 trillion in less than three years, positioning the South Asian market as one of the top performers regionally and globally. India's key stock benchmarks, already at all-time highs, have recorded a remarkable rise of more than 13 per cent this year, indicating unprecedented gains for the eighth consecutive year. In contrast, Hong Kong's equity measure has fallen by 17 per cent, with the market's total value dropping to less than $4.7 trillion.

Bloomberg cited Ashish Gupta, the Chief Investment Officer at Axis Mutual Fund, who highlighted the positive market response to India's transition from a consumption-oriented economy to one led by both consumption and investment. India's economic strength, coupled with political stability, has positioned it as the world's fastest-growing major economy.

Add WION as a Preferred Source

The nation's efforts to boost global investment in its capital markets and industrial production have garnered substantial foreign investor interest. In 2021 alone, foreign investors have injected over $15 billion into India's stocks on a net basis, while domestic funds have contributed more than $20 billion. The institutional support, along with increased retail trading during the pandemic, has played a pivotal role in India's stock market surge.

(With inputs from Bloomberg)

WATCH WION LIVE HERE