India's stock market overtakes Hong Kong's as the 4th largest in the world
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- India's stock market overtook Hong Kong's to become the fourth largest in the world.
- The total value of shares in India equaled $4.33 trillion at Monday's close, over Hong Kong's $4.29 trillion.
- While India's retail investor base has grown, Hong Kong has been weighed down by a slumping Chinese economy.
India's stock market is booming, and its value has ballooned so much that it overtook Hong Kong's on Monday, Bloomberg reported.
The total value of shares on Indian exchanges hit $4.33 trillion at Monday's close, compared to Hong Kong's $4.29 trillion, according to data compiled by Bloomberg, making it the fourth largest stock market in the world.
India passed the $4 trillion mark on December 5, with half of that value built up in just the past four years.
The stock market has been galvanized by a growing number of retail investors and strong corporate earnings.
Meanwhile, the country's population overtook China's last year, and it has been gearing itself up for boom-time economic growth and a flood of foreign investment.
Overseas funds poured over $21 billion into Indian stocks last year, and the S&P BSE Sensex, a benchmark index tracking Indian stocks, notched an eighth consecutive year of gains.
What has also helped close the gap between the two stock markets is a slumping Chinese economy and property crash, which have prompted foreign investors to shift money elsewhere.
Together, mainland Chinese and Hong Kong equities have lost a total of $6.3 trillion in market value since 2021. The Hang Seng Index, a benchmark index for Hong Kong stocks, has tanked around 30% in the past year, though it rose slightly on Tuesday on reports that Chinese policymakers are considering a $278 billion stimulus package.