The total mcap of all companies listed on the BSE has once again overtaken Hong Kong to rank as the world’s fourth-highest equity market.
Bloomberg data shows that the current mcap of the BSE all listed companies is $5.18 trillion, compared to $5.17 trillion for Hong Kong. With a mcap of $56.49 trillion, the US leads the world’s market, followed by China ($8.84 trillion) and Japan ($6.30 trillion).
On January 23, Indian markets surpassed Hong Kong, but Hong Kong quickly climbed back to its fourth place. The Hang Seng Index in Hong Kong has risen more than 12% since April and has now entered a bull market, up about 20% from its January low. This recovery comes after years of losses due to China’s economic concerns and geopolitical tensions. A stronger Chinese economy, lower valuations and increasing mainland investment have all boosted the market’s performance. Furthermore, China’s Rmb300bn ($41 billion) fund to promote the real estate sector has helped boost market sentiment.
In the meanwhile, significant volatility was seen last week in Indian markets following the election results. The market fell more than 6% on June 4, but it has since recovered and reached a new high. All BSE-listed businesses’ total market capitalization jumped by more than Rs32 lakh crore, hitting a record high of Rs432 lakh crore ($5.18 trillion).