India reclaims fourth-biggest global equity market tag from Hong Kong

The domestic equity markets have once again overtaken Hong Kong to reclaim the fourth-largest global market tag. Following the sharp rebound in the market from election result day lows, India’s market capitalisation has soared 10 per cent to $5.2 trillion, or Rs 435 trillion (BSE-listed companies). By comparison, Hong Kong’s mcap is $5.17 trillion, down 5.4 per cent from this year's high of $5.47 trillion. 

India surpassed Hong Kong’s market value for the first time in January. Since their market value has crisscrossed with each other a few times. From this year’s low of $4.3 trillion, Hong Kong’s market cap rose as much as 27 per cent amid a rebound in Hong Kong and China equities during a steady stream of policy support measures from Beijing. Currently, Hong Kong market trades at a 12-month forward price-to-earnings multiple of about 9 compared to 20 times for India. On a price-to-book basis, India trades at 3x, while Hong Kong is at just one time.