NEW DELHI: The domestic equity market is on the verge of overtaking the UK by at least one measure to be among the top-five club in the world.
The potential achievement comes as record-low interest rates and a retail-investment boom propelled stocks in the former British colony to record highs.
According to an index compiled by Bloomberg, market capitalization has risen 37% this year to $3.46 trillion, which represents the combined value of companies with primary listings there.
That’s closing in on the UK, which has seen an increase of about 9% to $3.59 trillion, although the numbers are much larger when secondary listings and depository receipts are included.
As the two economies converge in size, India’s high growth potential and a vibrant technology sector that has seen an influx of startups this year are giving an emerging market edge – especially as sentiment towards Chinese equities has soured . For the UK, the uncertainties related to Brexit continue to weigh on the market.
Roger Jones, Head of Equities at London and Capital Asset Management, said, “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 base. Helps realize potential.” Wrote in the email comments. “On the other hand, the UK has fallen out of favor since the outcome of the Brexit referendum.”
The S&P BSE Sensex – the flagship index of the BSE Ltd – has risen over 130% since its trough in March last year, the highest among the major national benchmarks tracked by Bloomberg.
It has given investors an annual return of around 15% in dollar terms over five years, more than double the 6% of the UK benchmark FTSE 100 index.
According to Goldman Sachs Group Inc., India’s stock market capitalization is expected to grow to $5 trillion by 2024. The new IPO could add about $400 billion in market value over the next 2-3 years, analysts led by Sunil Kaul wrote in a note last month.
The potential achievement comes as record-low interest rates and a retail-investment boom propelled stocks in the former British colony to record highs.
According to an index compiled by Bloomberg, market capitalization has risen 37% this year to $3.46 trillion, which represents the combined value of companies with primary listings there.
That’s closing in on the UK, which has seen an increase of about 9% to $3.59 trillion, although the numbers are much larger when secondary listings and depository receipts are included.
As the two economies converge in size, India’s high growth potential and a vibrant technology sector that has seen an influx of startups this year are giving an emerging market edge – especially as sentiment towards Chinese equities has soured . For the UK, the uncertainties related to Brexit continue to weigh on the market.
Roger Jones, Head of Equities at London and Capital Asset Management, said, “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 base. Helps realize potential.” Wrote in the email comments. “On the other hand, the UK has fallen out of favor since the outcome of the Brexit referendum.”
The S&P BSE Sensex – the flagship index of the BSE Ltd – has risen over 130% since its trough in March last year, the highest among the major national benchmarks tracked by Bloomberg.
It has given investors an annual return of around 15% in dollar terms over five years, more than double the 6% of the UK benchmark FTSE 100 index.
According to Goldman Sachs Group Inc., India’s stock market capitalization is expected to grow to $5 trillion by 2024. The new IPO could add about $400 billion in market value over the next 2-3 years, analysts led by Sunil Kaul wrote in a note last month.
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