India is now one of the world's stock market superpowers

India is now one of the world’s stock market superpowers

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The market capitalization of the companies listed on the Indian stock market has crossed four trillion dollars or four hundred million dollars. With this, the total market capitalization of the Indian stock market has come close to that of the Hong Kong Stock Exchange.

India’s stock market has reached new highs despite the devastating impact of Covid-19 and subsequent geopolitical tensions, Hindustan Times reported. Through this, the Indian stock market has become the superpower of the world. So far that title was only for US, China and Japan stock exchanges.

Shares in the Indian market have gained 25 percent this year. As a result, the total market capitalization of the Indian stock exchange has exceeded 4.16 trillion or 4.16 billion dollars. Hong Kong’s Hang Seng index has fallen 19 percent this year and is expected to fall behind India soon.

The main indices of Indian stock market are Nifty and Sensex. These two indices have risen to new highs this year. This year, the growth of Nifty has been 18 percent and the growth of Sensex has been 17.3 percent.

According to market research firm Ernst & Young, more than 150 new companies have been listed in the Indian stock market in the first 9 months of this year. At the same time, only 42 companies were listed on the Hong Kong stock market. The Sensex touched a new high of 72,000 points on Wednesday.

Currently, the stock exchanges in the world whose market value is higher than that of India are New York Stock Exchange and Nasdaq of the United States, Shanghai Exchange of China, Euronext, Japan Stock Exchange and Shenzhen Stock Exchange.

Foreign investors bought shares in Indian markets on news that the Federal Reserve will cut interest rates. Foreign institutional investors sold shares in September and October. But they subsequently bought more shares than they sold on news of a policy rate cut. Due to that, there has been a dramatic rise in the Indian stock market at the end of the year.

In terms of economic growth, brokerage firm CLSA expects India to become the world’s third largest economy in the next few years. Now India’s GDP is 3.4 trillion or 3.40 billion dollars. India will overtake Japan by 2027. Then by 2047, India’s economy will reach 29 trillion or 29 million dollars.

According to CLSA, India will become the third largest economy in the world by 2027. Only the economies of China and the US will be ahead of India. India’s economy could surpass that of the US by 2052 if major reforms are implemented. In keeping with India’s GDP growth, the combined value of the stock market will increase at that rate or more.
Experts believe that if the GDP doubles, the combined value of the stock market will also double. According to Dalal Street analysts, the key indices will double in the next five years.

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