BSE Again Overtakes Hong Kong To Become Fourth-Highest Equity Market Globally

The BSE has once again surpassed Hong Kong in total market capitalisation (Mcap), securing its position as the fourth-largest equity market in the world. According to Bloomberg data, the Mcap of all BSE-listed companies now stands at $5.18 trillion, edging out Hong Kong's $5.17 trillion. The United States remains the largest equity market with a Mcap of $56.49 trillion, followed by China at $8.84 trillion and Japan at $6.30 trillion.

Recent Market Performance

Indian markets had previously overtaken Hong Kong on January 23 but saw a reversal as Hong Kong regained its position. However, recent surges have put BSE ahead once more. On Thursday, the combined market capitalisation of BSE-listed firms reached a record high of Rs 431.67 lakh crore ($5.18 trillion), coinciding with the benchmark Sensex hitting an all-time high.

The 30-share BSE benchmark index rose 538.89 points (0.70 per cent) to a peak of 77,145.46 before closing at a new record high of 76,810.90, up 204.33 points (0.27 per cent).

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Hong Kong's Market Dynamics

Since April, Hong Kong's Hang Seng Index has surged over 12 per cent, entering a bull market with a nearly 20 per cent rise from its January low. This recovery follows significant losses driven by economic concerns and geopolitical tensions involving China. Contributing factors include a stronger Chinese economy, lower valuations, increased investments from mainland China, and a substantial fund to support the real estate sector.

Recent Indian Market Trends

Indian markets experienced significant volatility after recent election results. On June 4, the market saw a sharp decline of over 6 per cent, but it quickly rebounded, hitting a new record high. Over the past two days, investors' wealth has increased by Rs 4.72 lakh crore.

Economic Outlook

India, currently under an NDA government supported by 300 MPs, faces a challenging political landscape without a single-party majority. Despite this, the BJP and Prime Minister Narendra Modi aim to maintain stability and continuity in key ministries.

Market Outlook

Looking ahead, two major near-term triggers for the market include the upcoming Budget and June quarter earnings. Concerns over changes to the capital gains tax have eased, and the Budget is expected to present a mixed outlook for investors.

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