UK surpasses India as the world’s sixth-biggest equity market
The UK has surpassed India as the sixth-largest equity market in the world for the first time since May 2022 as a weaker pound increases the attraction of exporters and concerns over the Adani-Hindenburg controversy are being felt throughout Indian markets.
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UK now the world’s sixth-biggest equity market: Key Points
- This hasn’t happened since May 29, 2022, when the combined market capitalization of primary listings in the UK, excluding ETFs and ADRs, reached about $3.11 trillion on Tuesday, according to Bloomberg.
- This is $5.1 billion more than their Indian counterparts.
- The UK’s FTSE 350 Index, which consists of firms in the domestically oriented FTSE 250 and FTSE 100, has increased 5.9% so far this year. Nifty 50 has decreased 3.5% thus far in 2023.
- The widely-traded Nifty fell to a four-month low and the benchmark Sensex plunged 927 points as a result of sharp selling in heavyweight firms brought on by geopolitical and inflationary worries.
- The major indices fell for a fourth straight day as a result of losses in global stocks and widespread selling ahead of the monthly expiry of options.
- The BSE Sensex fell 927.74 points, or 1.53%, to close at 59,744.98, its lowest level since February 1. Up to 29 Sensex stocks saw losses. It fell by 991.17 points or 1.63 percent over the day to 59,681.55.
- The 50-issue NSE Nifty lost 272.40 points, or 1.53%, to close at 17,554.30, a four-month low. 47 of its members also recorded negative closing prices.
Why did UK surpass India as the world’s sixth-biggest equity market?
- Since US-based short-seller Hindenburg Research published a damning report against the conglomerate, India’s equity market has been dealing with a double whammy of a lower currency and the significant fallout of the stock tumble being experienced by Adani Group enterprises.
- The company refuted the allegations made in the Hindenburg Research study from January 24 that it had inappropriately used offshore tax havens and had manipulated stock prices.
- Concerns about its excessive debt levels were also raised in the report. Due to Hindenburg’s devastating assessment, the listed Adani equities saw a combined market capitalization loss of an astounding $140 billion.
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Adani and the Hindenburg report:
- In an effort to assuage traders concerned about the group’s access to funding, Adani has consistently refuted the allegations and reduced spending in addition to repaying loans.
- After losing more than 4% due to the Adani stock decline since late January, the BSE’s market capitalization was Rs 261 lakh crore.
Also Read: Hindenburg Report Drags Gautam Adani down from 3rd to 7th position on Forbes’ rich list