India’s inventory market worth has overtaken Hong Kong’s to change into the seventh largest on the earth as optimism in regards to the nation’s financial prospects develop.

As of the top of November, the whole market capitalization of the National Stock Exchange of India was $3.989 trillion versus Hong Kong’s $3.984 trillion, in line with knowledge from the World Federation of Exchanges.

India’s Nifty 50 index reached one other report excessive on Monday. It has jumped almost 16% thus far this yr and is headed for its eighth straight yr of positive factors. In distinction, Hong Kong’s benchmark Hang Seng index has plunged 18% yr so far.

India has been a standout market this yr within the Asia-Pacific area. Increased liquidity, extra home participation and enhancing dynamics within the international macro setting within the type of falling U.S. Treasury yields have all boosted the nation’s inventory markets.

The world’s most populous nation additionally heads into common elections subsequent yr, which analysts predict could possibly be one other victory for the ruling nationalist Bharatiya Janata Party.

“For the general election, opinion polls and recent state elections indicate that the incumbent BJP-led government may secure a decisive win, which could trigger a bull run in the first three to four months of the year on expectations of policy continuity,” HSBC strategists stated in a shopper observe.

HSBC stated banks, well being care and vitality are the most effective positioned sectors for subsequent yr.

Sectors corresponding to autos, retailers, actual property and telecoms are additionally comparatively effectively positioned for 2024, whereas fast-moving client items, utilities and chemical substances are amongst these HSBC categorized as unfavorable.

In early November, the Hong Kong authorities stated it expects the economic system to develop 3.2% in 2023, trimming its GDP growth outlook from the 4% to five% forecast in August.

The metropolis’s authorities has warned that rising geopolitical tensions and tight monetary situations proceed to weigh on investments, exports of products and consumption sentiment. Consumer confidence has additionally suffered in Hong Kong.

“Hong Kong’s economy is poised for a soft landing in 2024 as annual real GDP growth moderates to around 2% from 2023’s 3.5%,” stated economists at DBS.

“Central to this recovery is mainland tourism revival, fortifying retail and catering sectors.”

China has set a progress goal of 5% for 2023. Its third quarter-GDP came in at 4.9%, lifting hopes that the world’s second-largest economic system will meet and even exceed expectations.