India's Stock Market Soars Past $4 Trillion, Outshining Regional Peers

India’s stock market value crossed the $4 trillion (roughly ₹333.46 lakh crore) threshold for the first time on Tuesday, a significant achievement for the world’s fifth-largest equity market. This rapid growth has seen India close in on Hong Kong, whose equity measure has dropped 17% this year.

What to know? With a $1 trillion (roughly ₹83.36 lakh crore) increase in market capitalization in under three years, India stands out as a top performer both regionally and among emerging markets. Its key stock benchmarks, already at all-time highs, have climbed over 13% in 2023, poised for an eighth consecutive year of gains.

This milestone coincides with India surpassing China as the world’s most populous country and its recognition as the fastest-growing major economy.

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Global stage: India’s appeal to global investors is rising, thanks to political stability and strong domestic growth prospects. This year, foreign investors have infused over $15 billion (roughly ₹1.25 lakh crore) into Indian stocks, while domestic funds have contributed more than $20 billion (roughly ₹1.66 lakh crore). Retail trading has also seen a boom since the pandemic.

This influx of investment aligns with India’s transition from a consumption-led to an investment-driven economy, a shift that has garnered positive market responses.

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