India’s Stock Market Outperforms Hong Kong's | The Beat HK

India’s Stock Market Surpasses Hong Kong’s, Attracting Global Investors

India's stock market has achieved a remarkable milestone by overtaking Hong Kong's market for the first time, solidifying its position as a favoured investment hub. Bloomberg data reveals that the combined value of shares listed on Indian exchanges has reached an impressive US$4.33 trillion, surpassing Hong Kong's US$4.29 trillion. This achievement propels India to become the fourth-largest equity market worldwide, with its stock market capitalization crossing the US$4 trillion mark on Dec. 5.

The Indian equities market has experienced a significant surge, driven by a rapidly expanding retail investor base and robust corporate earnings. India, with its stable political environment and consumption-driven economy, has emerged as a compelling alternative to China. The country attracts fresh capital from global investors and companies alike, with its growth momentum and position as one of the fastest-growing major nations.

In a report by Bloomberg, Ashish Gupta, Chief Investment Officer at Axis Mutual Fund in Mumbai, highlights India's favourable prospects, stating that it possesses all the necessary ingredients for further growth. Meanwhile, Hong Kong has faced a historic downturn due to stringent anti-Covid-19 measures, regulatory crackdowns on corporations, and a property-sector crisis.

While some strategists anticipate a reversal in China's fortunes, others believe that Indian stocks are currently overpriced. UBS Group AG expects Chinese stocks to outperform Indian counterparts in 2024, citing favourable valuations. Conversely, Bernstein recommends profit-taking on Indian stocks due to their perceived high prices.

Despite these opinions, momentum appears to be firmly on India's side at present. Overseas funds have poured over US$21 billion into Indian shares in 2023, aiding the S&P BSE Sensex Index in achieving eight consecutive years of gains.

Goldman Sachs Group Inc. strategists echo the sentiment, stating that India is widely viewed as the best long-term investment opportunity. With its surging stock benchmarks and growing international confidence, India's stock market continues to entice global investors seeking promising returns and sustainable growth.

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