For the first time, the Indian stock market has outperformed Hong Kong's. India is now the fourth-largest equity market in the world, with the total value of shares listed on Indian exchanges reaching $4.33 trillion as of Monday's closing, compared to $4.29 trillion for Hong Kong, according to figures collated by Bloomberg. On December 5, its stock market capitalization exceeded $4 trillion for the first time, with over half of that amount coming from the previous four years.
"India possesses all the necessary components to accelerate growth," stated Ashish Gupta, chief investment officer of Mumbai's Axis Mutual Fund, to Bloomberg.
Hong Kong's downturn is also a result of China's declining attraction. Hong Kong is home to some of the most significant and inventive companies in China. Chinese stocks have been severely impacted by Beijing's strict anti-Covid-19 restrictions, regulatory crackdowns on firms, a crisis in the real estate industry, and geopolitical tensions with the West.
Since peaking in 2021, the combined market capitalization of Hong Kong and Chinese equities has dropped by over $6 trillion. Hong Kong, the Asian financial center, is no longer one of the busiest places in the world for initial public offers (IPOs) as there are fewer new listings now.
In 2023, foreign investors invested over $21 billion in Indian stocks, contributing to the nation's benchmark S&P BSE Sensex Index reaching a record eight years of increases.
In a statement dated January 16, strategists from Goldman Sachs Group Inc., including Guillaume Jaisson and Peter Oppenheimer, stated that "there is a clear consensus that India is the best long-term investment opportunity." The note also included survey findings from the firm's Global Strategy Conference.
