Indian stock market claims fourth place, toppling Hong Kong - report

India's stock market has reached to new heights, topping Hong Kong for the first time in history as it reflects the South Asian nation's burgeoning growth prospects and investor confidence, fuelled by policy reforms and a booming domestic economy.

As of Monday's close, the combined value of shares listed on Indian exchanges reached a staggering $4.33 trillion, surpassing Hong Kong's $4.29 trillion, according to Bloomberg data.

The ascent propels India to the coveted position of the world's fourth-largest equity market, a significant leap from crossing the $4 trillion mark just last December.

India's political environment and consumption-driven economy, one of the fastest-growing among major nations, have positioned it as an attractive alternative to China for global investors and companies alike.

India surges as China stumbles

Hong Kong, strangled by Beijing's strict Covid-19 curbs, new regulations on corporations, a property-sector crisis, and simmering geopolitical tensions, the former financial hub has seen its appeal as the world's growth engine diminish significantly.

Chinese and Hong Kong's equities have also seen the total market value of its stocks plummet by over $6 trillion since its 2021 peak.

The slowdown has even impacted new listings, causing Hong Kong to lose its prominent position as one of the world's busiest venues for initial public offerings.

“We see India as the best structural growth story across not just emerging markets, but worldwide,” said Evan Metcalf, CEO at Global X ETFs, according to Bloomberg.

“While China’s growth has stalled and is mired in uncertainty, India has a generational opportunity to emerge as the growth engine of emerging markets. Demographics are a key advantage, coupled with a surge in educated youth and a progressive government pursuing key structural reforms.”