Indian stocks reclaim spot in world’s top 5 markets
India has regained its position as the world’s fifth-largest stock market after losing that spot to France in January, helped by a rebound in Adani Group shares.
India’s market capitalization hit $3.3 trillion as of Friday, as Adani shares rebounded from the crash and foreign money rushed buying. France lost more than $100 billion of its market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE saw widespread selling on fears of a slowdown in China and the United States.
India is benefiting from a faltering economic recovery in China that has seen money circulated abroad from Asia’s largest economy into Indian stocks. Foreign investors have added $5.7 billion worth of Indian stocks since the beginning of April, seeking stable earnings growth backed by one of the highest GDP growth rates among the world’s large economies.
Christopher Wood, Strategist at Jefferies Financial Group Inc. Indian stocks weighed last week In his model portfolio for the Asia-Pacific region outside Japan to reflect disappointments in the Chinese stock market after a strong rally earlier this year.
The S&P BSE Sensex rebounded again by more than 9 percent after briefly entering correction territory in mid-March, to close at record highs. Adani Group’s fortunes rebound added momentum after that A court-appointed panel said it had found no conclusive evidence of stock-price manipulation as alleged by US shorting firm Hindenburg Research.
Adani’s 10 listed entities added nearly $15 billion to its market capitalization last week to cut their losses Post-Hindenburg Report to $105 billion from $153 billion previously.