India's stock value exceeds $5 trillion after NDA's poll victory

Days after NDA formed the government under Prime Minister Narendra Modi, the market capitalisation of stocks in India crossed over $5 trillion for the first time. This as, the Modi 3.0 government ensures policy continuity in India.

India's stock value

As per data compiled by Bloomberg, with this feat, India's equity market has joined the ranks of the US, China, Japan and Hong Kong after topping the threshold last week. The Bloomberg report also noted that it took India about six months to add the latest $1 trillion to the capitalization of companies listed on its exchanges.

The victory for NDA and a recent upgrade of India's ratings outlook by S&P Global Ratings have made Investment into India appealing for global investors. This is reflected in the upwards movement of the Indian stock market, ever since the ruling Bharatiya Janata Party secured sufficient support from key allies to form a coalition government

Bloomberg quoted Goldman Sachs strategist Sunil Koul and said that the formation of the new government with most key ministers retaining their portfolios “broadly affirms policy continuity,”

The recent gains over the years could also be attributed to millions of yound Indians who have taken to equity investments. As per Bloomberg, local funds, including banks and insurers, have bought more than $26 billion in shares this year, while foreigners offloaded about $3.4 billion

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