Adani Group Stocks Play a HUGE Role in It as India Dethrones This Country to Reclaim Fifth Largest Stock Market in the World
India defeated France to restore its position as the fifth-largest stock market in the world.
Stock Market News: Thanks to a significant recovery in Adani Group stock prices, India overtook France to restore its position as the fifth-largest stock market in the world. In January, France surpassed India in this ranking.
According to a Bloomberg report, the market capitalization of India reached $3.3 trillion on Friday after foreign funds accelerated buying and the shares of the Gautam Adani-led conglomerate recovered from a decline.
A slowdown in China and the US, however, caused luxury goods producers like LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE to plunge, causing France to lose more than $100 billion in market value last week.
As a result of a rotation brought on by China’s sluggish economic recovery, international funds are pouring money into Indian markets. Since the beginning of April, foreign investors have added $5.7 billion worth of Indian stocks, drawn in by consistent earnings growth and assisted by one of the highest GDP growth rates among major nations worldwide.
According to Bloomberg, strategist Christopher Wood of Jefferies Financial Group Inc. increased the proportion of Indian equities in his Asia Pacific ex-Japan model portfolio last week to reflect the disappointments in the Chinese stock market following a significant rally earlier this year.
After briefly dipping into correction territory in mid-March, the S&P BSE Sensex Index has recovered more than 9% and is now approaching record high levels.
How did the stocks of Adani Group rise again?
After a court-appointed tribunal concluded that there was insufficient evidence of stock price manipulation, as claimed by US short-seller Hindenburg Research, Adani Group’s shares saw a comeback.
According to Bloomberg, Adani’s ten publicly traded companies increased their market value by about $15 billion last week, which allowed them to reduce their post-Hindenburg report losses from as high as $153 billion to just $105 billion.
The Sensex and Nifty50 market benchmark indices rose on Monday due to strong global trends and FII activity. The significant 63,000-mark was recaptured by the S&P BSE Sensex.
To settle at 62,501.69, the 30-share BSE Sensex gained 629.07 points, or 1.02 percent. The NSE Nifty closed at 18,499.35, its highest finish so far in 2023, after gaining 178.20 points, or 0.97 percent.