In the past quarter, the Indian stock market has shown remarkable growth, outshining global counterparts. From April to June of FY 2024-25, the Indian stock market cap surged by 13.8% in Q2 FY 2024-25, reaching $5 trillion. This marks it as one of the top performers among the top 10 global markets. This bullish trend underscores India’s robust economic resilience.
What is driving the growth of the Indian stock market?
Let us take a look!
Indian Stock Market Surges Amid Foreign Investor Influx
In the last few months, the surge in stock market has been noteworthy. The stock market valuation rose sharply by 13.8% in the June quarter, reflecting robust investor confidence. That’s the biggest increase among the world’s top stock markets. Right now, India ranks fifth globally, with all its stocks combined worth a massive $5 trillion.
Global Stock Market Performance Overview
During this period:
- India led global markets with a 13.8% increase in market capitalisation.
- The U.S., as the world’s largest stock market, saw its valuation rise by 2.75% to $56 trillion in the June quarter.
- China saw a decline of 5.59%, reducing its valuation to $8.6 trillion.
- Taiwan and Hong Kong showed gains of 11% and 7.3%, reaching $2.49 trillion and $5.15 trillion, respectively.
- UK market increased by 3.3%, now valued at $3.2 trillion.
- Saudi Arabia faced the largest decline among top markets, down 8.7% to $2.67 trillion.
- France and Japan also experienced declines, reducing their valuations to $3.18 trillion and $6.31 trillion.
What factors are fueling the growth in the Indian stock market cap?
Well, foreign investors injected Rs 26,565 crore into Indian stocks in June, contributing to the market’s rebound.
Foreign Investors Boost Indian Stock Markets with Rs 26,565 Crore
Foreign portfolio investors (FPIs) injected Rs 26,565 crore into Indian equities, marking a significant turnaround after previous outflows. This influx is attributed to enhanced political stability and a vigorous market rebound.
Investment Trends in the Indian Stock Market
FPI Reinvestment Activity
After pulling out Rs 25,586 crore in May and facing losses in previous months, foreign portfolio investors (FPIs) are now back. Their sectors of focus are banking, auto, manufacturing, real estate, and select consumer industries.
Future Outlook
Now, all eyes are on the upcoming budget discussions and Q1 FY25 earnings. They are likely to influence how long-term FPI investments will be sustained.
Conclusion
This surge in the Indian stock market cap not only positions India among the top performers globally but also reflects robust investor confidence.
Stay tuned for budget 2024!
Source: zeebiz.com/market-news
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.