The UK recently surpassed India as the sixth-largest country by market capitalisation, as Indian market grappled with a crash in stock prices of Adani Group and a weak rupee that’s prompting foreign investors to turn net sellers.
This is the first time in nine months that the UK took the spot of sixth-largest market by value and India is at the seventh spot, a report said. Compared to India, a weak pound sterling is helping UK companies boost their exports and that, in turn, is leading to a surge in their stock prices, it said. At close of trading, the UK had a market cap of $3.11 trillion, about $5 billion ahead of India’s, data showed. The table is topped by the US with a market cap of almost $44 trillion, with China at the second spot with $11.1 trillion.
So far this year, the sensex is down by about 2. 3%, while the FTSE 100, the UK’s main index, is up by 5%. Declines in Indian stocks have taken losses in MSCI India index from a December 1 peak to more than 10% as of Wednesday, putting it on course to enter a technical correction. Even so, market participants have said that investor concerns around the Adani companies are focused on the group, rather than the broader Indian market.