With growing optimism about the country's economic prospects, India's stock market has overtaken Hong Kong's to become the seventh largest in the world.
According to the World Federation of Exchanges, the total market capitalisation of the National Stock Exchange of India was $3.989 trillion at the end of November, while Hong Kong's was $3.984 trillion.
India's Nifty 50 index hit another record high on Tuesday. It is up 16% so far this year and is on track for its eighth consecutive year of gains. By contrast, Hong Kong's benchmark Hang Seng index is down 17% so far this year.
Among the Asia-Pacific markets, India has stood out this year. India's equity markets have rallied on the back of a decline in US Treasury yields, improved momentum in the global macro environment and increased liquidity and domestic participation.
The world's most populous nation is also due to hold general elections in 2024, and HSBC strategists wrote in a note to clients: "Opinion polls and recent state elections suggest that the incumbent BJP-led government could secure a decisive victory in the general elections, which could trigger a bull run in the first three to four months of the year on expectations of policy continuity."
According to HSBC, the industries with the best prospects for the coming year are energy, banking and healthcare.
While utilities, chemicals, fast-moving consumer goods and retail are among the industries that HSBC rates as unfavourable, other sectors that are comparatively well positioned for 2024 include property, telecoms and automobiles.