With the glorious start of the year 2024, the Indian stock market also reached a new height and emerged as the fourth-largest market in the world. In the last month of 2023, 4.2 million demat accounts have been opened in India. It can be said that as more demat accounts are opened, investors have increased in the stock market.
India’s stock market is now among the top stock markets in the world. According to recent reports, the Indian stock market has overtaken the Hong Kong stock market. The Indian stock market has reached the fourth number on the world scale, that is, it has been included in the top five markets of the world. The combined cap value of Indian stocks reached $4.33 lakh while the combined cap value of Hong Kong’s top is $4.29 lakh.
India’s stock market reached $4 lakh in December 2023, after which the stock market crossed 4.33 trillion in the bullish momentum seen since the beginning of 2024.
India’s business-friendly economic policies and global investors’ reluctance to invest in China have directly benefited India’s stock market, say economic experts in the country.
Small investors in India have changed the landscape of the market. Middle-class investors in India, the world’s most populous country, have found a source of additional income generation through investing in the stock market. It can be said that China’s economic system has also contributed to the growth of India’s stock market. Global investors were upset with China’s restrictions on its country’s corporate companies during the Corona period and so, some investors turned to India.
The achievement here is that India has moved from number ten to number four in a span of five years. India has blown the myth that China is the growth engine of the world. According to the economic experts of the world, the bully by the Chinese authorities with the foreign companies during the Corona period has hit them hard.
China’s growth was stuck in uncertainties while India rolled out the red carpet for big companies and made available all the manufacturing facilities to them. Market shares in China and Hong Kong were bullish in 2021, but by 2024 they were in recession, which was broken by as much as 6 lakh crores.
The Hong Kong government took steps to prevent a falling stock market, but it did not have much of an impact. 21 billion dollars of foreign funds have flowed into India’s stock market. Due to which the S&P, BSE index etc got strengthened. A reputed rating agency like Goldman Sachs has said that there are many opportunities for long-term investment in India. Economists polled by Reuters estimate that inflation will remain under control and the Indian economy will grow at a rate of 6.9 percent this year.
Demat account is important before getting interested in the stock market. Seeing that the number of demat accounts is constantly increasing, it can be said that more and more people are ready to invest in the stock market. Normally around 2.1 million demat accounts are opened every month but in December 2023 i.e. in the last month of 2023 4.2 million demat accounts were opened.
Demat account facilities are offered by many banks and financial institutions which have been approved by SEBI for online trading in the stock market. Many companies that deal with the stock market offer transaction facilities. If we talk about the top ten share markets of 2024, the first number is the New York Stock Exchange of America which is located at 11 Wall-Street New York. Its capital is 26.2 trillion dollars. It includes 2400 companies.
Launched in 1971, Nasdaq (National Association of Securities Dealers Automated Quotations) has a market cap of $24.28 billion. The capital of the Shanghai Stock Exchange at number three is $6.87 trillion. European New Exchange Technology (EURONEXT) comes in fourth with a cap of &6.65 trillion. India’s market cap is $4.33 lakh.
It is worth mentioning here that after the corona period, there was a rise in the stock market of India. The market cap of Indian companies increased three times. There has been a huge improvement in the impression of stock market scams on the public mind. Middle-class investors are now trusting the stock market. Investors have increased their demat accounts due to which India’s stock market has reached the fourth position in the world.
Kalpesh has a rich experience of 10 years of handling and leading various projects. He is an independent freelancer associated with Academic Institutions and Social Organizations. He can be mailed at kalpeshsavan@gmail.com
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