The market capitalisation of companies listed on India’s stock exchange has hit $4 trillion for the first time.
The National Stock Exchange of India (NSE) is ranked the fifth largest in the world, but the record-high valuation means it is closing the gap with the Hong Kong Stock Exchange (HKEX).
While the HKEX remains the fourth largest exchange with a valuation of $4.7 trillion, the Hang Seng Index has fallen by 18% so far this year.
In contrast, the NSE’s two main indexes, the Sensex and the Nifty, have risen by 13.3% and 14.6% respectively.
The latest valuation caps a remarkable rise for the NSE worth less than $1.5 trillion in 2020, primarily due to the effects of the pandemic.
However, a rise in retail trading and a resurgence in foreign investments has helped boost the exchange to record heights. Overseas funds have invested $15 billion in Indian stocks in 2023 so far.
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