Despite pressure caused by global cues and events such as the Adani-Hindenburg fiasco, Indian stock markets have managed to bounce back since March 28. The rally for Indian stock indices has been driven by foreign investors who have raised their bets on companies listed on the countries exchanges.
Thanks to the green run, India's market cap has surged to $3.31 trillion, which is the fifth highest among countries across the globe now.
India races past major economies
India is now the most valuable economy in the world after the US, China, Japan and Hong Kong, and has surpassed the likes of France and the UK.
In the first five months of 2023 alone, India's market capitalisation has surged by $330 billion.
The country's stock market indice Sensex also ended the day with an upbeat sentiment above the 63,000 level.
Confidence in Indian markets intact
A surge in buying by foreign investors, which could further increase India's market cap, depends on the GDP data for March, scheduled to be released on May 31.
Confidence in Indian markets is already high, as international brokerage Jefferies is expecting Sensex to cross the one lakh point mark in the next five years.
The IMF has forecast that India will be a $5 trillion economy by 2027, but the government is taking measures to accelerate the growth.
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