India has outgrown Hong Kong to become the seventh-largest stock market in the world. According to data from the World Federation of Exchanges, the total market capitalisation of India’s National Stock Exchange (NSE) stood at $3.989 trillion as against $3.984 trillion in Hong Kong at the end of November.
Record results
The main index of the Mumbai Stock Exchange, the Nifty 50, set another record today. It has firmed 16 percent so far this year and is heading for its eighth straight year of growth. In contrast, the Hong Kong Stock Exchange’s Hang Seng index is showing a 17 percent fall since the beginning of the year.
India is an exceptional market in the Asia-Pacific region this year. According to CNBC, it is being helped by increased liquidity, greater domestic investor participation, and improved dynamics in the global macroeconomic environment, which is reflected in falling US Treasury yields.
Expectations
HSBC analysts said the impetus for further growth in the first few months of next year could come from the general election, which is expected to be another victory for India’s ruling People’s Party (BJP). Banks, healthcare, and energy are best positioned for next year, HSBC said.
The Hang Seng Index, on the other hand, is on track for its fourth consecutive annual decline and is performing the worst of the major stock markets in Asia Pacific. Moody’s last week cut Hong Kong’s credit rating outlook to negative from stable, citing the city’s financial, political, institutional, and economic ties to mainland China. Shortly before that, the agency downgraded the outlook on the Chinese government’s rating to negative from stable.
Source Czech Press Office
