India Overtakes Hong Kong As World's Fourth-Largest Stock Market Overseas funds poured more than $21 billion into Indian shares in 2023. 

India's stock market has surpassed Hong Kong's, making it the world's fourth-largest equity market. The combined value of shares listed on Indian exchanges reached $4.33 trillion, outpacing Hong Kong's $4.29 trillion. This achievement reflects India's robust growth prospects, policy reforms, and attractiveness to global investors. India's market capitalization crossed $4 trillion for the first time on December 5, with significant growth over the past four years.

Several factors contribute to India's thriving stock market, including a rapidly growing retail investor base and strong corporate earnings. India has positioned itself as an alternative to China, attracting substantial capital from global investors and companies. The nation's stable political setup and consumption-driven economy, among the fastest-growing globally, have enhanced its appeal.

Ashish Gupta, Chief Investment Officer at Axis Mutual Fund in Mumbai, notes that India possesses the right ingredients for sustained growth momentum. The country's equities have experienced a remarkable rally, coinciding with a historic slump in Hong Kong. The latter faced challenges such as Beijing's stringent anti-COVID-19 measures, regulatory crackdowns, a property-sector crisis, and geopolitical tensions, eroding its appeal as a global growth engine.

China and Hong Kong's total market value has plummeted by over $6 trillion since their 2021 peaks. Hong Kong has seen a decline in new listings, losing its status as one of the world's busiest venues for initial public offerings.

Despite these challenges, some strategists anticipate a Chinese market turnaround. UBS Group AG suggests Chinese stocks could outperform Indian counterparts in 2024 due to attractive valuations and significant upside potential. However, India's momentum remains strong for now.

Pessimism toward China and Hong Kong has deepened, with the Hang Seng China Enterprises Index already down about 13% in the new year. India's stock benchmarks, on the other hand, are trading near record-high levels.

Foreign investors are redirecting funds to India, with overseas investments exceeding $21 billion in 2023. A clear consensus is emerging that India represents the best long-term investment opportunity, as indicated by a survey conducted during Goldman Sachs Group Inc.'s Global Strategy Conference.

भारत ने विश्व के चौथे सबसे बड़े स्टॉक मार्केट के रूप में हॉंगकॉंग को पीछे छोड़ा; 2023 में विदेशी निधियों ने बहुत बड़ी राशि निवेश की।