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BSE outperforms Hong Kong to become fourth-largest equity market globally
US maintains its position as the world's largest market with m-cap of over $56 trillion

BSE outperforms Hong Kong to become fourth-largest equity market globally

Jun 14, 2024
11:43 am

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.