BSE outperforms Hong Kong to become fourth-largest equity market globally
What's the story
The combined market value of all companies listed on the Bombay Stock Exchange (BSE) has once again exceeded that of Hong Kong Stock Exchange making it the fourth-largest equity market globally. According to Bloomberg, the BSE's total market cap is currently at $5.18 trillion, slightly ahead of Hong Kong's $5.17 trillion. The United States maintains its position as the world's largest market with a market cap of $56.49 trillion, followed by China at $8.84 trillion and Japan at $6.30 trillion.
Market cap
India's market cap surpasses Hong Kong's
This is not the first time that Indian markets have outperformed Hong Kong. A similar event occurred on January 23, when the BSE's market cap surpassed that of Hong Kong. However, Hong Kong quickly regained its position as the fourth-largest global equity market. Since April, the Hang Seng Index has seen a significant increase of over 12%, entering a bull market with a nearly 20% rise from its January low.
Market dynamics
Factors driving Hong Kong and Indian market performance
The recent surge in Hong Kong's market can be attributed to a stronger Chinese economy, lower valuations, and increased mainland investments. China's $41 billion fund to support the real estate sector has also played a role in boosting market sentiment. In contrast, Indian markets experienced significant volatility following recent election results. Despite a 6% decline on June 4, the market quickly recovered and reached a record high shortly thereafter.