NEW DELHI: India reclaimed its spot as the world’s fifth-largest stock market after losing that status to France in January, aided by a revival in Adani Group stocks.
The market capitalisation of India stood at US$3.3 trillion (RM15.2 trillion) as of last Friday, as Adani shares rebounded from a rout and foreign funds accelerated purchases.
France lost more than US$100bil (RM459.8bil) in market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE saw a sell-off on fears of a slowdown in China and the United States.
India is benefitting from a stuttering economic recovery in China that has seen overseas funds rotate money out of Asia’s largest economy to Indian stocks.
Foreign investors have added US$5.7bil (RM26.2bil) worth of Indian stocks since the start of April, chasing stable earnings growth and aided by one of the highest gross domestic product growth rates among large economies in the world.
Jefferies Financial Group Inc strategist Christopher Wood last week raised the weight of Indian stocks in his Asia-Pacific ex-Japan model portfolio to reflect the disappointments in the Chinese stock market after a strong rally earlier this year. — Bloomberg