The capitalization of the Indian stock market exceeded the capitalization of Hong Kong for the first time. At the close of trading on Monday, the value of shares listed on Indian exchanges was $4.33 trillion, exceeding $4.29 trillion in Hong Kong. India is now the fourth largest securities market in the world. The growth of the Indian stock market is driven by a rapid increase in the number of retail investors and high corporate revenues. In addition, by becoming the most populous country in the world, India provides an alternative to China, attracting capital from global investors and companies thanks to a stable political system and a consumption-oriented economy. Global X ETF CEO Evan Metcalf highlights India as the best structural growth story, noting that, unlike China's slow growth, India can become the engine of emerging markets. However, despite the drop in the market value of China and Hong Kong by more than $6 trillion since its peak in 2021, some analysts predict that Chinese stocks will outperform Indian stocks this year.
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