India’s Market Capitalisation Surges by 9% in December
India’s Market Cap Reaches $4.93 Trillion
India’s market capitalisation saw a significant increase of 9 percent in December, making it the highest among the world’s top ten equity markets. This surge, the strongest in over three years, comes after four months of consecutive decline. According to Bloomberg, India’s total market cap now stands at $4.93 trillion.
Foreign Investors Drive the Surge
The 9.4 percent gain in market cap was primarily fueled by a revival in foreign investor activity. Foreign investors injected around $2.37 billion into Indian equities in December, reversing the trend of net outflows in October and November. This turnaround in foreign investment played a crucial role in India’s market performance.
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Global Market Comparison
India’s market performance stood out globally, as other major markets experienced declines. The United States, China, Japan, and other countries saw decreases in their market capitalisation, while India’s market cap surged ahead.
Challenges and Outlook
Despite global volatility and domestic challenges such as weaker corporate earnings and slowing economic growth, experts believe that India will remain relatively insulated from global shocks. The country’s long-term growth story remains intact, although GDP growth is expected to slow down in the coming years.
Analysts have delayed their forecast for rate cuts by the Reserve Bank of India, but expect easing to begin in the first quarter of 2025. Despite anticipated rate cuts, macro-prudential conditions are likely to keep retail loan growth subdued.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.