India’s equity market is at least on a scale to overtake the UK’s value and join the top five clubs in the world. Record-low interest rates and a boom in retail investment are likely to push stocks in the former British colony to record highs.
India’s market capitalization has risen 37 percent this year to $ 3.46 trillion, representing the combined value of companies listed there, according to a Bloomberg compilation index. While the figure is the largest when secondary lists and deposit receipts are added, in the UK it is up 9 per cent to $ 3.59 trillion.
As the two economies combine in size, India’s high growth potential and a vibrant technology sector flooding early this year give an edge to the emerging market – especially when sentiment on Chinese stocks is bad. For the UK, uncertainty over Brexit continues to weigh on the market.
“India is seen as an attractive domestic stock market with good long-term growth potential from an immature economy, and a stable and reformist political platform is helping to realize this potential,” Roger Jones, co-chairman of London & Capital Asset Management, wrote in an email comment. “On the other hand, the UK is not in favor after the end of the Brexit referendum.”
The S&P BSE Sensex – the benchmark index of the Indian stock market BSE Ltd. – rose more than 130 per cent from the tank in March last year, one of the key national benchmarks monitored by Bloomberg. It has handed over to investors nearly 15 per cent annual return in dollar terms over five years, more than double the UK benchmark FTSE 100 Index 6%.
India’s stock market capitalization is expected to reach $ 5 trillion by 2024. Note from last month.
(This story was not edited by NDTV staff and was automatically created from Syndicate Feed.)