🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Indian stock markets breaking global benchmarks in equity market cap

Published 15-06-2024, 08:05 pm
© Reuters.  Indian stock markets breaking global benchmarks in equity market cap
IND50
-
BSEPOWER
-
BSEPSU
-
BSETECK
-
BSEBANK
-

New Delhi, June 15 (IANS) As Indian stock markets continue to touch fresh new highs almost every day post the formation of the new government, they are also breaking global benchmarks.In a new feat, India has reclaimed the fourth-biggest global equity market tag from Hong Kong.

The country’s market capitalisation soared 10 per cent to reach $5.2 trillion (BSE-listed companies).

In comparison, Hong Kong’s equity market cap is $5.17 trillion, down 5.4 per cent from the high of $5.47 trillion this year.

On a price-to-book basis, India trades at 3 times, while Hong Kong is at just one time.

This comes as the Indian stock market has seen a significant rally in recent months and is now attracting global funds which are going to accelerate in the near future.

The National Stock Exchange (NSE) benchmark Nifty surged nearly 6 per cent in the last month and 11.84 per cent in the last six months.

According to market analysts, Nifty is expected to reach 25,816 in the next 12 months.

The Prabhudas Lilladher experts anticipate that the BJP-led NDA government will sustain its focus on capital expenditure-driven growth, particularly in sectors such as production-linked incentives (PLI), infrastructure development, including roads, ports, aviation, defence, railways, and green energy.

This expectation is supported by a 20 bps reduction in the fiscal deficit for FY24, normal monsoon forecasts, and an anticipated dividend of Rs 2.1 trillion from the RBI.

The analysts expect the NDA government to increase focus on farmers, rural, urban poor and middle class to arrest the impact of new social engineering-cum-freebies led reversal in certain states in recent elections

Meanwhile, the stock markets have emerged as a favourite investment destination for retail investors.

According to experts, the major driving forces in this bull market are the Indian retail investors, including HNIs, and big selling by the FIIs is getting eclipsed by the aggressive buying of DIIs and retail investors.

--IANS

na/uk

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.