India becomes world's fourth largest stock market, surpasses Hong Kong

India's stock market has surpassed Hong Kong's, marking a significant milestone for the South Asian nation. As of Monday's close, the combined value of shares listed on Indian exchanges reached $4.33 trillion, compared to Hong Kong's $4.29 trillion, making India the world's fourth-largest equity market.

This achievement highlights India's economic growth prospects and policy reforms, making it an attractive destination for investors. 

“India has all the right ingredients in place to set the growth momentum further,” said Ashish Gupta, chief investment officer at Axis Mutual Fund in Mumbai.

The surge in India's stock market is attributed to a rapidly growing retail investor base and robust corporate earnings. India has positioned itself as an alternative to China, attracting significant capital from global investors and companies. The stable political environment and a consumption-driven economy have contributed to India's status as one of the fastest-growing major nations.

Simultaneously, Hong Kong has experienced a historic slump, marked by stringent anti-Covid-19 measures, regulatory crackdowns on corporations, a property-sector crisis, and geopolitical tensions. This decline has eroded China's appeal as a global growth engine and triggered a significant equities rout. The total market value of Chinese and Hong Kong stocks has plummeted by over $6 trillion since their peaks in 2021. Hong Kong's status as a bustling venue for initial public offerings has also diminished, with new listings drying up.