India has regained its position as the world's fifth-largest stock market, with the value of its listed equities rising to $5.4 trillion and overtaking Taiwan after a sharp rebound in domestic shares, according to Bloomberg data reported on Thursday, November 12. The United States, China, Japan and Hong Kong remain the four larger markets. Business Today, in its own report the same day, put India's value at about $5.45 trillion against Taiwan's $4.36 trillion.

Source: Bloomberg data, via The Hindu BusinessLine

$5.4 trillionIndia's total market capitalisation — world's fifth largest
$640 billionRise in market value since late October
9.55%Nifty 50 gain so far in November
Rs 65,735 croreNet FPI buying in November through November 11
Rs 40,504 croreNet DII selling over the same period

India's market capitalisation has increased by around $640 billion since late October as benchmark indices extended their gains. The Nifty 50 closed at 25,255.05 on Wednesday, its highest level in more than eight months, and the Sensex closed at 81,879.40, up 0.95 per cent.

A sharp reversal in foreign flows drove the recovery: foreign portfolio investors bought a net Rs 65,735 crore of Indian equities in November through November 11, while domestic institutional investors sold Rs 40,504 crore, according to provisional exchange data — a reversal from October, when foreign investors sold a net Rs 45,162 crore. Geojit Investments chief investment strategist Dr V K Vijayakumar said the tug of war between foreign and domestic investors has now completely reversed, with foreign investors turning aggressive buyers and domestic investors consistent sellers.

Source: The Hindu BusinessLine

AI-linked markets lose momentum

The shift coincided with a correction in AI-linked markets such as Taiwan and South Korea, which had moved ahead of India earlier on strong demand for semiconductor shares. Concerns over AI infrastructure spending and technology profits triggered a pullback, and foreign investors withdrew $30.68 billion from Taiwanese equities and $14.59 billion from South Korean stocks in October, according to LSEG data.

At home, better-than-expected second-quarter earnings — profits of 35 Nifty 50 companies that had reported grew 22 per cent year on year — and a near 19 per cent fall in Brent crude in November, from $113.43 a barrel on October 30 to around $92, eased pressure on India's import bill and inflation outlook, supporting the rally.