The Mumbai Stock Exchange achieved an important milestone this week, with its market value exceeding $ 5 trillion, and the total market value increased by $ 1 trillion in less than 6 months.

The reference 10 -year Indian government bond yield has fallen to less than 7%this year.The bond market now estimates that due to the record of the record of the central bank, India's deficit will be lower than the previous pricing.

The two major Indian stock markets are the Mumbai Stock Exchange (BSE) and the National Stock Exchange (NSE).Among them, the Mumbai Stock Exchange was established in 1875, the representing index is Sensex30; the State State Stock Exchange was established in 1992 and began trading in 1994. The representing index is the Nifty50 Index.

The market value of India has surged by more than 60%on the basis of the low point in March 2023. This growth was promoted by the rise in stocks of small and medium -sized companies.

In addition, the country's stock market has received blood transfusion support for newly listed large companies in recent years.For example, the latest market value of Indian Life Insurance Company, which was listed two years ago, was $ 78.9 billion.In addition to the life insurance company, the market value of the entire public sector enterprise (PSU) has increased significantly in the past year.

India now has 100 stocks with a market value of more than $ 10 billion, and before the epidemic, this number is only 30.

Currently, Relianceindustries is still the highest market value company in India, followed by Tataconsultances, HDFCBANK, Bhartiairtel, ICICIBANK, Indian National Bank of Life Insurance, Infosys, Hindustanu, Hindustanu nilever and ITC.

The market predicts that India is expected to become the third largest economy in the world. The GDP in the next three years is expected to reach $ 5 trillion and will reach $ 7 trillion by 2030.

India has enhanced economic resistance through a series of substantial and pragmatic reforms, including improving governance, increasing capital investment and promoting structural reforms in public sector.

Some institutions predict that the Indian capital market is expected to reach $ 10 trillion, which will create more opportunities for the economy.

Stock market rising gold owner: India's SIP plan

Where does the Indian stock market grow up?We have to mention India's SIP program.

Compared with ten years ago, another characteristic of the Indian stock market was that the proportion of foreign institutions' shareholding declined, while domestic shareholding ratio rose.

Data show that the shareholding ratio of foreign institutions decreased from 19.13%to 16.51%, while small investors participated in the proportion of participation in personal accounts and common funds.

The essence of the "System Investment Plan" SIP is a small rated investment. The promotion in India is quite successful. Each financial institution has launched a different investment field and investment style for 5 to 10 years.

SIPS deducts cash from investor's bank account every month and invests in the selected common fund.

In the past ten years, the power and continuous marketing of the plan means that 90%of the domestic stock -common fund raising last year was completed through SIP.According to data from the Indian Co -Fund Association, the fundraising in April also reached a record high of 204 billion Indian rupees ($ 2.5 billion).

Although the benefits of the plan are obvious, from the reduction of investment frictions to eliminating market timing, because SIPS forced fund managers to purchase stocks on a regular basis, they also have some responsibility for the valuation of the Indian stock market to reach a record.

For example, despite the three major Indian stock funds, SBI Equity Hybrid Fund Regular Growth, HDFC MID CAP Opportunities Fund Growth, and Icici Prudential Balance Fund's investment portfolio The manager has enough room for room to turn the deposit you received temporarily as cashHolding, but their hands are often restrained by the authorization of the fund's full investment.

As more funds flow to these funds every month, the investment portfolio manager is forced to buy stocks, even if their valuation may not be so attractive.

Is there a public offering in the past few years like A shares?

"This special product, as well as domestic investors in the broad sense, said, said, said," this special product and domestic investors said. ""If funds flow into the fund, the fund manager obviously must invest."

He added that with the rapid growth of the basic economy and company's profit, SIPS "must have pushed the valuation"Mumbai Stock Exchange

The high valuation means that the US $ 3.1 billion (excluding Japanese) fund or Schroders such as Federated Hermes or Schroders is largely forced to withdraw from the Indian stock market.

Jonathan Painens, the head of the Hermès Fund, previously stated that despite India's economic prospects, India's medium -sized stocks are still in "bubbles".

For example, of the nearly 4,900 active transactions India listed stocks, 300 stocks have declined in the past two consecutive fiscal annual income in the past.However, according to statistics, 216 stocks have risen in the past 12 months.

In fact, a small disk company and Tantia such as Rollatainers, a food packaging carton manufacturer, have an infrastructure company focusing on railways, bridges, highways, and airports. The growth rate has been declining in the past three years.However, their stock has risen more than 300%over the past 12 months.

Having said that, at present, the positive impact of SIP seems to be greater than negative effects.

Foreign investors have always had a significant impact on the local stock market.

The largest stock index, Nifty 50 and Sensex.

Although the component stock company and the Indian economy of the index are largely isolated, when foreign financial status is tightened, the index also declines and capital outflows.

With the continuous growth of domestic investors, the turbulence of foreign markets may have a trivial impact in the future.

HDFC Securities Retail Research Director Deepak Jasani said that 87 million investors invested about $ 32 a monthly capital flow "can help reduce fluctuations caused by foreign investment portfoliosity and help increase estimates when FPI traffic is positive or neutral.value."

At present, the savings directly invested in the stock market are still small among Indians' annual savings.

According to Jefu Rui's data, the Indians savings account for about 18%of GDP each year, which is about 800 billion U.S. dollars.Among them, it is estimated that only 40 billion US dollars (that is, 5%) flow into the stock market through SIPS, insurance and pension plans.

As investors' investment in the stock market becomes more freely, the increase in the proportion of savings and the increase in total savings may transport more funds to the asset category.

When will the Indian stock market bubble burst?

The International Monetary Fund has raised the forecast of Asian economic growth in 2024 on Tuesday, which is optimistic about India's economic growth, and pays attention to more stimulus in India.

It also said that India is "the fastest growing major economy in the world", and "public investment is still an important driving force."India is currently the fifth largest economy in the world, with a total domestic product of 3.7 trillion US dollars. The goal is to become the world's third largest economy by 2027.

India's central bank approves the highest dividend ever to the government.The 2.11 trillion rupee cash announced on Wednesday was much higher than the predictions of analysts and government.This will alleviate the needs of New Delhi in the market and help them manage any benefits and capital expenditures.

Volkswagen is negotiating with passenger car production partners.The German car manufacturer has operated two factories in India.The group's statement partly reflects the risks of the upgrading of the trade war between Washington and Beijing and the concerns of the possible impact on European auto manufacturers. Most of the auto manufacturers seriously depend on the Indian market.

Bank of America listed three Indian stocks as "the most important" shares in Asia.A industrial giant, one of the largest private banks, and a IT company on the Wall Street Bank list.The retrospective test shows that the top stock list of the investment bank "has performed well in 16 years in the past 29 calendar years"