India To Overpower UK In Stock Market Around The Globe
India's stock market is on the verge of surpassing the United Kingdom in terms of value, putting it in the top five in the world, at least by one metric. The possible achievement comes as the former British colony's stocks reach new heights thanks to record-low interest rates and a retail investing boom. As the two markets get closer in size, India's stronger potential for growth and a thriving technology sector, which has seen a slew of startups go public this year, give the emerging market an advantage — especially as sentiment toward Chinese stocks has deteriorated. Brexit related concerns continue to weigh on the market in the United Kingdom.
In emailed remarks, Roger Jones, head of equities at London and Capital Asset Management, mentioned that India is viewed as an appealing local stock market with great longer-term development potential from an undeveloped economy, and a stable and reforming political basis aids in reaching this promise. According to Goldman Sachs Group Inc, India's stock market capitalization will reach $5 trillion by 2024. In a report published last month, analysts led by Sunil Koul predicted that fresh IPOs may add about $400 billion in market value over the next 2-3 years.