India's stock market overtakes Hong Kong's as the 4th largest in the world

• India's stock market overtook Hong Kong's to become the fourth largest in the world.
• The total value of shares in India equaled $4.33 trillion at Monday's close, over Hong Kong's $4.29 trillion.

India's stock market is booming, and its value has ballooned so much that it overtook Hong Kong's on Monday, Bloomberg reported.

The total value of shares on Indian exchanges hit $4.33 trillion at Monday's close, compared to Hong Kong's $4.29 trillion, according to data compiled by Bloomberg, making it the fourth largest stock market in the world.

India passed the $4 trillion mark on December 5, with half of that value built up in just the past four years.

The stock market has been galvanized by a growing number of retail investors and strong corporate earnings.

Meanwhile, the country's population overtook China's last year, and it has been gearing itself up for boom-time economic growth and a flood of foreign investment.

Overseas funds poured over $21 billion into Indian stocks last year, and the S&P BSE Sensex, a benchmark index tracking Indian stocks, notched an eighth consecutive year of gains.

What has also helped close the gap between the two stock markets is a slumping Chinese economy and property crash, which have prompted foreign investors to shift money elsewhere.

Together, mainland Chinese and Hong Kong equities have lost a total of $6.3 trillion in market value since 2021. The Hang Seng Index, a benchmark index for Hong Kong stocks, has tanked around 30% in the past year, though it rose slightly on Tuesday on reports that Chinese policymakers are considering a $278 billion stimulus package.