The market capitalization of the Indian stock market reached $3.3 trillion at Friday’s close, according to Bloomberg, supported by the rebound in Adani Group shares after being sold by a report by short-selling firm Hindenburg Research more early this year.
It came with support from foreign investors pumping $5.7 billion into Indian stocks since early April, in light of stable earnings expectations, in addition to the country recording one of the highest growth rates. among the largest economies in the world.
The Indian financial market had lost its position to the benefit of France, according to a report by the US “Hindenburg Research” in January, in which it accused the “Adani” group, which has diversified its activities in the sector of ports and energy, “brazen stock manipulation” and “accounting fraud”.
At the time, the allegations led to a sale of Adani shares, resulting in a sharp decline and billions in losses in Indian financial markets.This case caused the companies included in the Adani group.
Meanwhile, the French stock market lost more than $100 billion of its market value last week, with luxury stocks such as LVMH and Vivendi falling on fears of a slowdown in China and the United States.
Economists believe that the reason for the rise in Indian stock markets is due to the unstable economic recovery in China, which has prompted investors to turn to India instead.
On the other hand, economists also point out that India’s stable macroeconomic situation, which has one of the highest GDP growth rates among major global economies, has helped the country’s stock market improve its position. among the main competitors.
It should be noted that the Indian economy recorded a growth of 7.2% in the financial year 2022-2023, driven by the performance of the services and consumption sectors, which places it among the economies with the fastest growing in the world.
The fiscal year in India begins on April 1 and ends on March 31.
India is the world’s fifth largest economy and recently overtook China to become the world’s most populous country.
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