India regained its position as the world’s fifth-largest market after a broad rally in domestic stocks. This comes after they temporarily lost qualification to France in January. Strong developments in the Indian stock market contributed to the rise in this ranking.
India’s local stock market has risen since March 28 as buying by foreign investors continues as India’s macroeconomic conditions improve. Sensex and Nifty were up nearly 10%, while BSE mid- and small-cap stocks were up nearly 15%. BSE Bankrex is up nearly 13%.
Foreign investors have bought about $6.3 billion worth of domestic stocks in the past two months. India’s market capitalization is $3.31 trillion.
It currently ranks 5th out of the 10 highest rated countries. Since the beginning of the year, its market capitalization has increased by nearly $330 billion.
By comparison, the United States takes the lead with a market value of $44.54 trillion, followed by China with $10.26 trillion and Japan with $5.68 trillion. Hong Kong ranks fourth with a market capitalization of $5.14 trillion, while France ranks sixth with a market capitalization of $3.24 trillion.
Foreign securities firm Jefferies recently expressed confidence in India’s ongoing structural history, believing it was only a matter of time before the BSE indicator, Sensex, would surpass the staggering 100,000 marking. This goal captures the allure of India’s vibrant financial media environment. Jefferies’ guidance assumes earnings per share (EPS) growth of 15% over five years and a one-year average price-earnings ratio (PE) of 19.8.
Investors are now eagerly awaiting the release of March quarter gross domestic product (GDP) data, which is due to be released on May 31st. The data is expected to provide further insight into the state of the Indian economy and may influence market sentiment and investment decisions.
