India is one of the strongest economies on Earth and it is expected to be one of the leading global economies within the next 20 years along with China.
Thanks to India and China, by 2050, the world’s economic center will shift from the Western Hemisphere to southern Asia for the first time ever. In fact, this year the Indian Stock Market passed into the top 10 for biggest stock markets on Earth. This is the first time this has ever happened for the country. The Indian Stock Market now surpasses that of Australia. It is estimated that the total market capitalization of Indian companies has jumped 25 per cent this year, to more than $1.43 trillion after a string of jumps for the market.
Currently, India is the third-largest economy in Asia after China and Japan.
One big reason for this is the Indian Stock Market.
The History
To talk about the history of the Indian Stock Market, one has to talk about the Bombay Stock Exchange. Established in 1875, it has grown to become the largest stock market in India, and Asia’s first stock exchange, as well as the fastest one, with a speed of 200 micro-seconds. Its roots actually trace back to 1855 when four Gujarati and one Parsi stock broker gathered under banyan trees in front of Mumbai’s Town Hall. On August, 31, 1957, the exchange became the first to be recognized by the Indian government under the Securities Contracts Regulation Act. It is one of the leading exchange groups. Over the past 139 years, the Bombay Stock Exchange has facilitated the growth of the Indian corporate market, while at the same time providing an efficient capital-raising platform.
Currently, the Bombay Stock Exchange is the world’s top exchange in terms of the number of listed members. With over 5,000 companies, this pushes the total value of the exchange to $1.24 trillion, which makes it account for most of the total market value of the stock market in India.
In terms of index options trading, it is the third largest exchange on the planet.
In 1995, the exchange witched to an electronic trading system. Amazingly, it took only 50 days to make this transition. This system has a capacity to do eight million orders per day. The Bombay Stock Exchange also introduced the world’s first centralized exchange-based Internet trading system, allowing investors from all over the world to trade from that platform.
Its Recent Growth
The India Stock Market has continued to grow over the course of the past little while. Currently, the market is a bull market and by all accounts, it is expected to continue. Inflows from foreign institutional investors could double in the next year alone. This is mostly thanks to Narendra Modi, who is the next prime minister of India. Both the Nifty and Sensex indices rose to their second consecutive record-breaking highs thanks to the rising hopes on the exit polls after India’s month-long election. Modi is expected to put a lot of pro-business policies in his 100 days in office. The Sensex rose by 2.5 per cent to 23,572.88, while Nifty rose 2.35 per cent to 7,020.05. The Wisdom India Fund also settled 3.77 per cent higher. So far, this year to date, the India Exchange Traded Fund has risen 17.6 per cent, while emerging markets have risen 1.26 per cent.
Thanks to Modi’s commitment to boosting investment, the market will continue to grow. Thanks to the new policies coming in, foreign investors are expected to have an easy time investing in the India Stock Market.
India Vs China
Between India and China, India is doing very well with its stock market. A quarter century ago, India’s stock market was worth $25 billion, while China barely had any sort of market. Ten years ago, the market was worth $681 billion in China, while India’s was worth $279 billion. Five years ago, the Chinese market was worth $2.7 trillion, while India’s was worth $645 billion.
While China does have a larger stock market capitalization, India’s is rising much faster. Over the past year, the Chinese stock market has risen 9.1 per cent in value. India’s has risen by an astounding 24.42 per cent.
Compared to the rest of the world, India’s stock market has risen faster than e very single country except for Mexico and Turkey. Turkey has seen a rise of 28.47 per cent , while Turkey has seen a rise of 53 per cent. China ranks well bank of several countries, including the UK, the United Kingdom, South Korea, France, Saudi Arabia and more.