According to a Bloomberg report on June 17, the Indian stock market rallied for days after Prime Minister Narendra Modi’s victory in the general election, breaking through a market capitalization of $5 trillion.
Bloomberg reported that the Indian stock market has added $1 trillion to its market cap in just six months. With this, the Indian stock market has become the fifth largest in the world, following the United States, China, Japan, and Hong Kong.
The recent rally in the Indian stock market is due to the expectation that the current economic policies will continue with Modi’s victory in the general election.
Modi is leading rapid economic growth in India by actively pursuing infrastructure improvements for its swift development. Bloomberg also analyzed the recent rally, which was due to young people entering the stock market in India.
The youth in India have been jumping into the stock market as it rallies. A swarm of retail investors, or “ants,” is forming in India.
Foreign institutional investors led previous rallies in the Indian stock market. Many foreign funds betting on India’s rapid growth flowed in.
However, retail investors have also entered the market recently, emerging as a new driving force behind the rise.
Head of Research at Elara Capital in Mumbai Bino Pathiparampil said, “Foreign institutional investors, who were once dominant, are no longer the only driving force in the market.”
Most Commented