The same stock market, why the Indian stock market is soaring

Mondo Finance Updated on 2024-01-28

India** has performed like an epic financial saga over the past 33 years, with its market capitalization increasing 100 times!This miraculous achievement is not accidental, but thanks to the four secrets**, investors feel as if they have a golden key to open the door to wealth. Today I will talk about what magic weapons India has.

Speaking of magic weapons, we have to mention the implementation of a thorough registration system in India. It's like a playground with an open door, it's easy to get in, but it's hard to have a good time without getting kicked out. Listed companies are like children who want to go into the playground to play, it is easy to get in, but if you want to stay forever, you must strictly follow the rules of the game, otherwise you will be ruthlessly invited out of the playground. According to statistics, the delisting rate has exceeded 50%, which shows its severity. However, such a system also ensures that the companies that remain in the market are truly elite.

It is not enough to thoroughly implement the registration system, they also have a unique set of protection mechanisms. In India, institutional investors are like shackled elephants who need to follow T+3 trading rules, while in contrast, they are like nimble kittens who can enjoy T+0 treatment. This kind of "big cat and kitten" differential rules make it possible to dance with elephants to a certain extent and enjoy more investment freedom and convenience.

Second, their index compilation is quite reasonable. India's main ** index is made up of 30 constituent stocks, which can be said to be one in a hundred high-quality stocks, the best of the best, and the survival of the fittest. It's like picking the sweetest ones from a pile of fruits and making a mouth-watering fruit salad. Such an index is not only representative, but also better reflects the overall state of the market.

There is also the fact that India's GDP continues to grow at a high speed, which is like providing a steady stream of fuel for this ** train. Over the past 22 years, India's GDP has grown at a compound growth rate of more than 7%, and this steady growth momentum has provided strong support.

In addition to these secrets, there is another enviable aspect of India – there have only been two medium-sized bear markets in the last decade. That is, most of the time, investors can enjoy the joy of a bull market without worrying too much about the large volatility of the market.

To sum up, India's success is not accidental, but based on a set of scientific institutional design and solid growth in economic fundamentals. As the saying goes: "If you want to do a good job, you must first sharpen your tools." "India's Four Secrets are undoubtedly a powerful tool that has helped them stand out in the global financial markets and become an investment destination that should not be overlooked. Finance

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