23.01.2024, 14:46
India has become the fourth largest securities market in the world
Source: OREANDA-NEWS
OREANDA-NEWS The combined value of shares listed on the Indian stock exchanges — National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE), at the close of trading on Monday, January 22, reached $ 4.33 trillion, Bloomberg reports.
Thus, the Indian stock market surpassed Hong Kong ($4.29 trillion) for the first time in this indicator and became the fourth largest securities market in the world. At the same time, the Indian stock exchanges overcame the $4 trillion mark only on December 5, and about half of the total capitalization has increased in the last four years.
The stock market in India is booming amid a rapidly growing number of retail investors and high corporate revenues. This Asian country is positioning itself as an alternative to China for capital investment, attracting funds from foreign investors and companies due to one of the fastest growing and stable economies in the world.
"While growth in China has stalled and is full of uncertainty, India has the opportunity to become a growth engine for emerging markets," says Global X ETF CEO Evan Metcalf. According to him, the key advantage of India is the demographic factor, combined with an increasing share of educated youth and the progressive government of the country, which is carrying out key structural reforms of the economy.
The Hong Kong stock market is experiencing a downturn amid the introduction of repressive measures against businesses by the Chinese government, the crisis in the real estate sector and geopolitical tensions in the country's relations with the West. Since its peak in 2021, the market capitalization of all listed stocks there has collapsed by more than $6 trillion.
However, some experts, including Bernstein, believe that the Chinese market will recover. UBS Group predicts that in 2024, Chinese stocks will outperform Indian stocks in terms of profitability, as they are currently undervalued and have significant growth potential.
On January 22, Chinese shares in Hong Kong fell to a record level in 19 years due to investor pessimism. The shares of such Chinese technology giants as Meituan (minus 5.5 percent) and Tencent Holdings (minus 3.46 percent) declined the most. The CSI 300 index of mainland China fell 1.56 percent to 3,218.9 points. The Hang Seng China Enterprises index fell by 2.96 percent (the lowest level since July 2005) and became one of the worst indicators in Asia.
Thus, the Indian stock market surpassed Hong Kong ($4.29 trillion) for the first time in this indicator and became the fourth largest securities market in the world. At the same time, the Indian stock exchanges overcame the $4 trillion mark only on December 5, and about half of the total capitalization has increased in the last four years.
The stock market in India is booming amid a rapidly growing number of retail investors and high corporate revenues. This Asian country is positioning itself as an alternative to China for capital investment, attracting funds from foreign investors and companies due to one of the fastest growing and stable economies in the world.
"While growth in China has stalled and is full of uncertainty, India has the opportunity to become a growth engine for emerging markets," says Global X ETF CEO Evan Metcalf. According to him, the key advantage of India is the demographic factor, combined with an increasing share of educated youth and the progressive government of the country, which is carrying out key structural reforms of the economy.
The Hong Kong stock market is experiencing a downturn amid the introduction of repressive measures against businesses by the Chinese government, the crisis in the real estate sector and geopolitical tensions in the country's relations with the West. Since its peak in 2021, the market capitalization of all listed stocks there has collapsed by more than $6 trillion.
However, some experts, including Bernstein, believe that the Chinese market will recover. UBS Group predicts that in 2024, Chinese stocks will outperform Indian stocks in terms of profitability, as they are currently undervalued and have significant growth potential.
On January 22, Chinese shares in Hong Kong fell to a record level in 19 years due to investor pessimism. The shares of such Chinese technology giants as Meituan (minus 5.5 percent) and Tencent Holdings (minus 3.46 percent) declined the most. The CSI 300 index of mainland China fell 1.56 percent to 3,218.9 points. The Hang Seng China Enterprises index fell by 2.96 percent (the lowest level since July 2005) and became one of the worst indicators in Asia.
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