“This should change as market free-float rises and some weight anomalies get sorted out,” Jefferies said. If the nation’s track record of generating annual returns of 10% in dollar terms over the past two decades holds up, India’s market will be “impossible for large global investors to ignore,” the report added.
India’s stock market value is set to more than double to US$10 trillion ($13.43 trillion) by 2030, going by its history of delivering double digit returns and expectations of continued economic reforms, according to Jefferies Financial Group Inc.
The nation’s market, currently the world’s fifth largest at US$4.5 trillion, briefly overtook Hong Kong last month. Still, its weight in global stock indexes is below 2%, leaving ample scope for foreigners to ramp up investments, analysts including Mahesh Nandurkar and Chris Wood wrote in a Feb 21 note.
