India’s stock market has achieved a historic milestone, surpassing Hong Kong for the first time. The total value of shares listed on Indian exchanges reached $4.33 trillion, exceeding Hong Kong’s $4.29 trillion as of Monday’s close, making India the world’s fourth-largest equity market. This significant achievement is attributed to the impressive growth in Indian equities, fueled by a rising base of retail investors and robust corporate earnings.
The stock market capitalization crossed the $4 trillion mark on December 5, with half of this increase occurring in the past four years. India is emerging as an appealing alternative to China, attracting global capital and companies due to its stable political environment and a consumption-driven economy among the fastest-growing globally.
In stark contrast, Hong Kong has experienced a historic downturn, facing challenges such as stringent anti-Covid-19 measures in Beijing, regulatory crackdowns, a property-sector crisis, and geopolitical tensions with the West. This decline has diminished China’s appeal as a global growth engine, resulting in a significant equities downturn. Chinese and Hong Kong stocks have collectively lost over $6 trillion in total market value since their 2021 peaks. Hong Kong’s role as a prominent hub for initial public offerings has waned amid the turmoil.
While India’s stock market has witnessed volatility in major IT and tech shares in recent weeks, four stocks have notably surged due to their connection to the consecration ceremony of the Ayodhya Ram Mandir on January 22. Allied Digital Services shares rose over 41 percent after winning the contract for the Ayodhya Smart City Project. Thomas Cook India experienced a 35 percent spike in share prices after announcing budget travel packages to Ayodhya. Easy Trip Planners, another travel company, saw a 20 percent rally since October 2023, announcing travel packages for Ayodhya. InterGlobe Aviation’s stock surged over 27 percent after increasing holdings in IndiGo Airlines and announcing commercial flight operations to Ayodhya.
India’s ascent in the global stock market rankings highlights its economic resilience and attractiveness to investors, while Hong Kong grapples with multiple challenges affecting its financial hub status.
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