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India overtakes Hong Kong to alter into the enviornment’s seventh biggest stock market

Pedestrians run towards the Chhatrapati Shivaji Terminus reveal house at dusk in Mumbai, India, on Wednesday, Oct. 4, 2023.

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India’s stock market value has overtaken Hong Kong’s to alter into the seventh biggest on this planet as optimism about the country’s economic prospects grows.

As of the pause of November, the total market capitalization of the National Stock Alternate of India used to be $3.989 trillion versus Hong Kong’s $3.984 trillion, in step with records from the World Federation of Exchanges.

India’s Nifty 50 index reached one more file high on Tuesday. It has jumped 16% thus some distance this 12 months and is headed for its eighth straight 12 months of beneficial properties. In distinction, Hong Kong’s benchmark Grasp Seng index has plunged 17% 12 months thus some distance.

India has been a standout market this 12 months within the Asia-Pacific space. Increased liquidity, extra domestic participation and improving dynamics within the world macro ambiance within the manufacture of falling U.S. Treasury yields hang all boosted the country’s stock markets.

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The sphere’s most populous country moreover heads into classic elections subsequent 12 months, which analysts predict would possibly perchance perchance well also very well be one more victory for the ruling nationalist Bharatiya Janata Party.

“For the classic election, thought polls and unique suppose elections mask that the incumbent BJP-led government would possibly perchance perchance well also salvage a decisive gain, which would possibly perchance perchance well also position off a bull slump within the necessary three to four months of the 12 months on expectations of coverage continuity,” HSBC strategists acknowledged in a consumer mask.

HSBC acknowledged banks, well being care and energy are the ideal positioned sectors for subsequent 12 months.

Sectors much like autos, retailers, actual estate and telecoms are moreover relatively well positioned for 2024, while mercurial-transferring particular person items, utilities and chemical compounds are among those HSBC categorized as heinous.

Hong Kong lags

In early November, the Hong Kong government acknowledged it expects the economic system to develop 3.2% in 2023, trimming its GDP increase outlook from the 4% to 5% forecast in August.

The metropolis’s government has warned that increasing geopolitical tensions and tight monetary prerequisites proceed to weigh on investments, exports of issues and consumption sentiment. Particular person confidence has moreover suffered in Hong Kong.

“Hong Kong’s economic system is poised for a relaxed touchdown in 2024 as annual actual GDP increase moderates to around 2% from 2023’s 3.5%,” acknowledged economists at DBS.

“Central to this restoration is mainland tourism revival, fortifying retail and catering sectors.”

China has position a increase purpose of 5% for 2023. Its third quarter-GDP came in at 4.9%, lifting hopes that the enviornment’s 2nd-biggest economic system will meet or even exceed expectations.

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