NSE India - the world's largest derivatives exchange for the fifth consecutive year

India's National Stock Exchange was again in 2023, for the fifth consecutive year, the largest derivatives exchange in the world by the number of traded contracts, reports livemint.com, noting that it ranked third in the world on share segment by number of transactions.

"The NSE group (National Stock Exchange and NSE International Exchange) was, also in the calendar year 2023, the largest exchange group of derivative financial instruments in the world, according to the number of contracts traded, based on the statistics published by the Futures Industry Association (FIA) ," the Indian stock exchange reported last week.

CNBC wrote, at the end of last year, that the market value of the Indian Stock Exchange surpassed that of its rival in Hong Kong, becoming the seventh largest in the world, as optimism about the country's economic prospects is growth. At the end of November 2023, the total market capitalization of India's National Stock Exchange was $3.989 billion, compared to Hong Kong's $3.984 billion, according to data from the World Federation of Stock Exchanges. New data shows that at the end of last year, the market capitalization of companies listed on the NSE exceeded $4 trillion. At the same time, the Nifty 50 index crossed the threshold of 20,000 points for the first time in 2024.

India was a remarkable market in 2023 in the Asia-Pacific region, according to CNBC. The increase in liquidity, more domestic participation and the improvement of the dynamics in the global macro environment, against the background of the decrease in the yields of American government securities, stimulated all the stock markets of the country. The world's most populous country is also heading for general elections next year, and analysts are predicting another victory for the ruling nationalist Bharatiya Janata Party (BJP).

"For the general elections, opinion polls and recent state elections indicate that the incumbent BJP-led government could secure a decisive victory, which could trigger a bull trend in the market in the first three to four months of of the year, based on the expectations related to the continuity of the policies", are the opinion of HSBC bank strategists, quoted by CNBC.

According to HSBC analysts, banking, healthcare and energy are the best-positioned sectors for the current year, and areas such as automotive, retail, real estate and telecommunications are also relatively well-positioned for 2024, while consumer goods, utilities and chemicals are unfavorable.