India's market capitalization can easily grow to $40 trillion in the next 20 years, driven by stronger investor confidence and robust economic growth, analysts said.
After overtaking Hong Kong's stock market in December, India currently has the fourth largest in the world, and is now valued at over $4 trillion.India's market capitalization can easily grow to $40 trillion in the next 20 years, driven by stronger investor confidence and robust economic growth, analysts said.
India's benchmark Nifty 50 index soared 20% in 2023. After overtaking Hong Kong in December, the country's market is now ranked, valued at over $4.6 trillion. On Monday, the Nifty 50 and BSE Sensex surged to fresh closing highs of 22,666 and 74,742, respectively, Refinitiv data showed. India also has a "pipeline of new capital" that can continue to boost market valuations, Hajra said. India saw 220 initial public offerings in 2023, the highest of any country according to"India has the largest number of listed companies in the world globally at over 6,000 and they like raising equity earlier in their life cycle," explained Hajra.Despite those high valuation multiples, analysts said India should still be part of an investor's core allocation.