Daily Management Review

Indian exchange NSE may overtake Hong Kong in total capitalization of issuers


According to the Financial Times, the National Stock Exchange of India (NSE) could soon overtake the Hong Kong Stock Exchange in terms of issuers' total capitalization and rank seventh globally.

The World Federation of Exchanges (WFE) reports that as of the end of October, issuers whose shares were traded on the NSE had a combined capitalization of $3.7 trillion. The Hong Kong site's indication hit $3.9 trillion.

A week ago, the announcement of the ruling party's triumph in many state elections caused Indian market indices to post their best dynamics in 14 months and update historical records.

Hong Kong's Hang Seng dropped 18.1% since the year began, while India's Nifty 50 gained 15.8%.

Abhiram Eleswarpu, who oversees the India desk at BNP Paribas' Hong Kong office, told the FT that while the Indian and Chinese equity markets were rivals in the previous ten years, their courses had begun to diverge in the last three years. "Chinese stock indices are generally declining, while India is going one way: up," he stated.

source: ft.com