India Rises to Become a Potential South Asia Leader, Catching Up with Hong Kong

India’s stock market reached its milestone of being the world’s fifth-biggest equity market with a market value of more than $4 trillion.

In less than three years, companies listed on India’s exchanges have raised their market capitalization by more than $1 trillion, making the South Asian market to become one of the best performers in both the region and the world.

The contrast of growth between two market leaders in South Asia started to become more and more explicit as India’s key stocks benchmarks grew 13% this year, developing to unprecedented gains for eight years in a row, while Hong Kong equity measure has fallen by 17% to below $4.7 trillion.

Ashish Gupta, Chief Investment Officer at Axis Mutual Fund, stated that India has moved itself from being consumption-led economy to consumption and investment economy, and the markets have given back the positive feedback for the country to continue developing this promising strength.

India’s GDP rose by 7.6% YoY in Q3/2023, as this should drive the prospect of the Prime Minister Narendra Modi to maintain his power in the election next year.

Though some experts are wary about the uncertainty from high valuations of Indian shares or volatility in the stock benchmarks, some are still optimistic as they foresee India to be the best structural growth prospects in South Asia.