The total market capitalisation of all BSE-listed companies has surpassed that of Hong Kong again making it the fourth-highest equity market globally. Currently, the mcap of all BSE listed firms stood at $5.19 trillion compared to $5.17 trillion for Hong Kong, according to data from Bloomberg. The United States is the world’s biggest stock market with a mcap of $56.49 trillion, China is second with a mcap of $8.84 trillion and Japan is third with $6.30 trillion.
Indian markets surpassed Hong Kong this year on January 23 but Hong Kong regained its fourth position as its benchmark Hang Seng index rallied over 12 per cent, entering a bull market with around 20 per cent surge since January. The rebound came after years of losses due to China’s economic concerns and geopolitical tensions. Factors including a stronger Chinese economy, lower valuations, and increased mainland investments give a boost to the market. In addition, China’s $41 billion fund to support the real estate sector has further lifted the investor sentiment.
Indian stock market has witnessed significant volatility after the election results. On June 4, the market tanked by over 6 per cent but it has been rounding since then to hit fresh all-time highs. The aggregate market cap of all BSE-listed companies rose by over Rs 32 lakh crore, reaching a new high of Rs 432 lakh crore or $5.18 trillion.
The BJP-led NDA coalition won the 2024 general elections narrowly, with 292 out of 543 seats in the Lok Sabha.
Kotak Institutional Equities expects the ‘new’ government to continue with its investment-led economic agenda, but it may tweak its priorities to support consumption and employment.
“We will get a better sense of the same over the next few weeks and in the FY2025 final budget. The government may continue with its focus on affordable healthcare and housing, energy transition, infrastructure development and manufacturing,” it said.
According to the report, the government has already executed the bulk of the required reforms for incentivizing private investments and execution will be more material.
Government data released on Wednesday showed, retail inflation continued its downward slide to reach a one-year low of 4.75 per cent in May due to a decline in prices of the food basket and remained within the Reserve Bank’s comfort limit of below 6 per cent.
