India has surpassed the United Kingdom, Canada, and Saudi Arabia to become the fifth most valuable stock market in the world.
At present, the United States is the world’s largest market, with a market value of $47.32 trillion, followed by China ($11.52 trillion), Japan ($6 trillion), and Hong Kong ($5.55 trillion).
With the exception of Saudi Arabia, all of the world’s major financial markets fell as a result of the Russia-Ukraine crisis. Since the beginning of December, the United States has lost almost $6.6 trillion, China has lost $1.48 trillion, Japan has lost $622 billion, and Hong Kong has lost $524.31 billion.
Since the beginning of the year, India has lost less: $257.35 billion. According to Morgan Stanley, despite the surge in crude, Indian equities performed admirably, likely owing to a combination of a shift in macro financing mix toward FDI, lowering oil intensity in GDP, high real relative policy rates, and a strong local buy on stocks.
“Recovery in markets over the past couple of days is obviously aided by positive sentiments about election results as well as talk that the war in Ukraine seems to be coming to some sort of closure. There have been signals of reconciliation between Russia and Ukraine, and their foreign ministers are expected to meet again today,” said Nilesh Shah, managing director of Kotak Mahindra Asset Management in an exclusive interview with CNBC-TV18.
Geopolitical tensions between Russia and Ukraine are affecting equity markets, particularly in India, where foreign institutional investors have been selling for a long time (FII).
“For the Indian stock markets, the real war is the continuous FII selling, which on a daily basis is in the region of $1 billion for the past few days,” said Raamdeo Agrawal, co-founder and joint managing director of Motilal Oswal Financial Services, in a CNBC-TV18 interview. “The FIIs have exited India for now, but they will have a very painful entry whenever they decide to come back to Indian equities,” Agrawal added.
