 "Photo: Bloomberg")
By Chiranjivi Chakraborty
India reclaimed its spot as the world’s fifth largest stock market after losing that status to France in January, aided by a revival in Adani Group stocks.
Market capitalisation of India stood at $3.3 trillion as of Friday, as Adani shares rebounded from a rout and foreign funds accelerated purchases. France lost more than $100 billion in market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE saw a sell-off on fears of a slowdown in China and the US.
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ndia is benefitting from a stuttering economic recovery in China that has seen overseas funds rotate money out of Asia’s largest economy to Indian stocks. Foreign investors have added $5.7 billion worth of India stocks since the start of April, chasing stable earnings growth and aided by one of the highest GDP growth rates among large economies in the world.
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Jefferies Financial Group Inc. strategist Christopher Wood last week raised his weight of Indian stocks in his Asia Pacific ex-Japan model portfolio to reflect the disappointments in the Chinese stock market after a strong rally earlier this year.
The S&P BSE Sensex Index has bounced back more than 9% after briefly entering correction territory in mid-March, closing in on record high levels. A rebound in Adani Group’s fortunes further boosted momentum after a court-appointed panel said it found no conclusive evidence of stock price manipulation as alleged by US short seller Hindenburg Research.
Adani’s 10 listed entities added around $15 billion to their market value last week to trim their losses post-Hindenburg’s report to $105 billion from as high as $153 billion earlier.
