Indian stock market value surpasses $4 trillion for first time ever

The Indian total stock market value surged past $4 trillion on Wednesday for the first time ever, a crucial milestone for the world's fifth largest securities market. 

Such a historic surge came amid increased investments by both individual investors and foreign entities, in turn closing the gap quickly with the fourth largest securities market in Hong Kong. 

In less than three years, the market value of companies listed in the Indian exchanges surged by a trillion dollar, making the Indian market the best performing of its kind in the developing world. 

Indian Stock Indices 

This year, Indian stock indices rallied 13% to a record high on track for the eighth yearly increase in a row.

Conversely, Hong Kong's main stock indices fell 17%, while total market value fell to below $4.7 trillion. 

Indian market value doubled 3 times since hitting a low in March 2020, reaching over $4 trillion.

Net purchases by foreign investors in the Indian stock market rose to over $15 billion this year, while local investment funds pumped over $20 billion.

Indian Economy Beats China 

India's stock surge comes at a time of the best economic growth rate worldwide by the Indian economy, gradually becoming a more attractive alternative to the Chinese economy for foreign investors.

While the global economy slows down due to higher interest rates and tight monetary policies, India's GDP has surged 7.6% in the third quarter, continuing to attract foreign capital away from China. 

The Indian government has also been boosting political stability and spending to lure investors in and convince them of the vitality of the Indian market. 

Thus gradually, India has moved from an economy mainly depending on consumption to one that depend additionally on investments.