India has restored its place as the fifth-largest market in the world as a result of a widespread rebound in the country’s equity markets. This follows a short period in January during which France held the top rank. This rise in ranking was helped in part by the prosperous performance of the Indian stock market.
Since March 28, the local equities market in India has been on a rally. This is due to sustained purchases from foreign investors as well as strengthening macroeconomic fundamentals in the country. The Sensex and the Nifty both increased by close to 10 percent, while both the BSE MidCap and the BSE SmallCap rose by close to 15 percent. The BSE Bankex has increased by over 13% of its previous value.
Over the course of the last two months, investors from outside the country have purchased local stocks to the tune of roughly $6.3 billion.
The current value of India’s market capitalization is $3.31 trillion. It now holds the fifth spot among the top 10 most valuable nations in the world. Its market capitalization has increased by about $330 billion since the beginning of this year, making it nearly three times as valuable.
The United States of America is now in first place with a market value of $44.54 trillion, followed by China with $10.26 trillion and Japan with $5.68 trillion, respectively. France comes in at number six on the list with a market worth of $3.24 trillion, while Hong Kong comes in at number four with a market capitalization of $5.14 trillion.
Jefferies, an international brokerage firm, recently expressed confidence in India’s long-term structural narrative and thinks that it is just a matter of time until the BSE benchmark Sensex reaches the astonishing 1,00,000 milestone. Jefferies’s prediction comes after the firm recently expressed confidence in India’s long-term structural narrative. This objective has piqued the interest of India’s thriving financial media scene.
The forecast provided by Jefferies is predicated on the expectation that profits per share (EPS) will increase by 15 percent over the course of the next five years and that the five-year average one-year forward price-to-earnings (PE) multiple will remain at 19.8 times.
The announcement of the gross domestic product (GDP) figures for the March quarter is slated to take place on May 31, and investors are now waiting with bated breath for this news. It is anticipated that these statistics will give deeper insights into the status of the Indian economy. Additionally, it may impact the mood of the market as well as investment choices.