India has claimed another global victory by overtaking Germany and become the seventh largest in the world. For the first time in seven years, the market capitalisation of Indian stock markets has surpassed that of Germany's, the largest economy in Europe, as per the data compiled by Bloomberg.
The order of the seven biggest stock markets in the world in terms of market capitalisation are US, China, Japan, Hong Kong, UK, France, and India. This means that after the UK leaves the European Union, France would become the only country from sub-continent to be among the seven biggest stock markets in the world.
Experts say that the data reflects the positive returns came from the reliance of Indian companies on domestic demand that enabled them to avoid a meltdown that occurred in the emerging markets after the Federal Reserve's monetary policy tightening and US-China trade war. Additionally, the change also highlights the challenges that the European Union is facing in its future with the UK amid Brexit, budget allocation issues in Italy and Spain's separatist clashes.
BSE's Sensex saw a 5 percent hike despite the MSCI Emerging Market index heading for a 17 percent decline. Investors have been cautious of countries that are heavily dependent on exports in a year that is dominated by trade protectionism and punitive tariffs by the Trump administration.
Germany drives over 38 percent of its GDP from exports as per the 2017 World Bank data.