India regains its status as the world’s fifth largest equity market

India has seen an unprecedented jump in economic growth, reflecting positively on its financial markets. India’s equity market was able to regain its fifth place as the world’s largest equity market with the support of foreign investors, after falling behind that ranking in favor of France in January.

The market value of the Indian stock exchange reached $3.3 trillion with Friday’s close, according to Bloomberg, supported by a bounce back in shares of Adani Group after a sell-off due to a report by the short-selling company Hindenburg Research released earlier this year.

This came with the support of foreign investors injecting $5.7 billion into Indian equities since the beginning of April, under stable profit expectations along with the country registering one of the highest growth rates among the world’s major economies.

Meanwhile, France’s stock market lost more than $100 billion from its market value last week, with shares of luxury commodity companies including LVMH, “Vivendi” slowing due to fears of a slowdown in China and the United States.

Economists believe that the reason for India’s market progress is due to China’s precarious economic recovery, which prompted investors to turn their sights to India instead.

India’s economy grew by 7.2% in fiscal year 2022-2023, driven by the performance of the services and consumption sectors, which put it in line with the world’s fastest-growing economies.