(Bloomberg) -- India’s stock trading value has surged to a record high versus that of Hong Kong, in yet another sign of shifting investor sentiment in Asia.
The average daily trading of stocks on India’s two largest exchanges combined stood at nearly $12 billion in 100 days through Feb. 8, compared with $8.5 billion in Hong Kong, data compiled by Bloomberg show. While India overtook Hong Kong in September, the gap has been widening since then, touching a fresh high on Thursday.
The deviation underscores shifting dynamics in Asia as investors increasingly see India as an alternative to China. India’s stock market capitalization briefly overtook Hong Kong’s in January.
“This reflects the prevailing consensus narrative toward India and Hong Kong/China stocks,” Nomura Holdings Inc. analysts led by Chetan Shah wrote in a Feb. 9 note. “Speaking to investors, we sense there is almost a consensus structurally positive view on India stocks.”
Read More: Wall Street Pivots to India as It Searches for China Alternative
India’s NSE Nifty 50 Index saw it’s eighth straight year of gains with a 20% return in 2023, while the Hang Seng Index dropped for a fourth straight year.
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