India has reclaimed its position as the world’s fifth-largest market following a strong rally in local equities. After briefly losing the spot to France in January, the positive performance of the Indian stock market has contributed to this resurgence in ranking.
With a Valuation of $3.31 Trillion; India Regains its Fifth Position in the Global Stock Market Tally
Since March 28, the local equity market in India has been on a rally, driven by continued buying from foreign investors and improving macroeconomic conditions.
Key indices such as the Sensex and the Nifty have seen significant gains, with the BSE MidCap and SmallCap also climbing. The BSE Bankex, focused on banking stocks, has experienced substantial growth as well.
Foreign investors have shown confidence in the Indian market, with nearly $6.3 billion invested in local equities over the past two months. India’s market capitalization currently stands at $3.31 trillion, placing it fifth among the top 10 most-valued countries.
Since the beginning of the year, it has witnessed an increase of approximately $330 billion in market capitalization.
United States Stands First, Followed By China, Japan, Hong Kong
In comparison, the United States holds the top spot with a market value of $44.54 trillion, followed by China with $10.26 trillion and Japan with $5.68 trillion. Hong Kong ranks fourth with a market capitalization of $5.14 trillion, while France holds the sixth position with a market value of $3.24 trillion.
Foreign brokerage Jefferies has expressed confidence in India’s long-term growth story and has set a target for the BSE benchmark Sensex to cross the significant milestone of 100,000. This projection is based on assumptions of 15 percent earnings per share (EPS) growth over a five-year period and the maintenance of a five-year average one-year forward price-to-earnings (PE) multiple of 19.8 times.
Investors are now eagerly awaiting the release of gross domestic product (GDP) data for the March quarter, scheduled to be announced on May 31. This data is expected to provide further insights into the state of the Indian economy and may influence market sentiment and investment decisions.
