Booming India stock market and the emerging Indian tech giants

India stock

Indian stock market performance

Regarding India stock market performance, please refer to my previous “India stock tripled in three years to US$3.56 trillion, ranking fourth in the world” and “Global stock markets performance comparision over the past 30 years in a table“, there are detailed explanations in these two posts.

India’s tech giants

Company nameBusiness areaMain investors
Bill DeskSimplify of billing payment
ByjusK12 educationTencent
Dream11Online sport and gamingTencent
DruvaDigital security
FreshworksCRMticker: FRSH
Flipkartecommerce, retail Walmart, Tencent, Microsoft, Softbank
Future Groupecommerce,
GrowwInvestment platform
HikeSocial networkTencent
IcertisContract management
InMobiMobile advertisement
JioSocial networkFacebook
MeeshoSocial networkFacebook, Softbank
MikemytripOnline ticket,
MLPOnline game, eSportAlphabet, Sequoai
MohallaApp development
Mu SigmaBig dataSoftbank
OlaRide hailing Tencent, softbank
LenskartOnline eyewearSoftbank
Loa ElectricEV
OyoRide hailingDidi, Microsoft, Huazhu Hotels Group
Oyo RoomOnline hoteling
PayTMFintechAlibaba, Berkshire Hathaway, Softbank
PayTM Malecommerce, retailAlibaba
PhonePeUPI paymentFlipkart
Pine LabsPOS devices
Policy BazaarOnline insurance
QuikrNews aggregation
Reliance Retail ecommerce and
ReNew PowerRenewable energy
ShareChatSocial networkAlphabet, SnapChat, Microsoft
SwiggyFood deliveryTencent, Meituan, Hillhouse Capital 
UdaanB2B trading platformTencent
ZomatoFood deliveryAnt group, Alibaba, Shunwei Capital

Even Buffett’s Berkshire (ticker:s: BRK.A and BRK.B) have invested in PayTM. There will be a total of seven unicorns in India in 2020, and there will be only six in 2019. Catering delivery platforms Zomato, Paytm, ride-hailing service startup Ola, e-commerce company Flipkart, etc. will soon be listed.

China’s influence on Indian tech giants

The Indian emerging technology giants listed above are almost inseparable from the support of large sums of funds from the Chinese technology giants, and they are all major investors. These Chinese technology giants include Alibaba (ticker: BABA), Tencent (ticker: TCEHY), Xiaomi, and Fuxing. Among them, Alibaba and Tencent have invested the most funds on these emerging technology giants in India. After the China-India fallout last year and India completely banned Chinese software and Internet products, this wave of Chinese technology giants’ investment in India’s emerging technology giants has officially come to an end.

Starting in 2015, Tencent and Alibaba began to increase their bets in India. India had only 31 unicorn companies by the end of 2019, and nearly half of them were divided between Alibaba and Tencent. According to statistics in mid-2020, of the 30 Internet unicorns in India, 18 have Chinese shareholders.

India stock

US’s influence on Indian tech giants

Amazon (ticker: AMZN), Alphabet (ticker:s: GOOGL and GOOG), WalMart (ticker: WMT), Microsoft (ticker: MSFT) and Facebook (ticker: META) make huge investments of billions of dollars at every turn. In contrast, the investment amount of Chinese companies and Chinese capital is much smaller, but China’s capital coverage is wider than that of the US technology giants. Usually, Chinese companies will not obtain controlling rights or dominate operations. These are the biggest difference from U.S. giants.

In short, almost all the funds behind India’s emerging technology giants come from the Chinese and American technology giants; plus Softbank from Japan, there are very few exceptions. With no doubt, India stock market will grow in the future!


Not allow to list overseas

According to current regulations, Indian companies are not allowed to list directly on overseas exchanges. They can only list on overseas exchanges through instruments such as depositary receipts. Indian Finance Minister Nirmala Sitharaman said on September 11, 2023 that India may reconsider allowing local companies to list on foreign exchanges.

Higher maturity

Asia’s earliest stock exchange, the Bombay Stock Exchange (BSE), was established as early as 1875, and the Indian stock market implemented a registration system in 1992. Since then, a number of reforms and regulatory measures have been implemented to improve the functions of financial markets and give foreign institutions greater trading freedom.

Listed industry balance

The industrial structure is also relatively balanced. The industries with the highest market value in India are mainly finance (17.3%), optional consumption (14.6%), information technology (13%), energy (12.3%) and daily consumption (11.5%).

Retail investors over institutional

In terms of institutional arrangements, the Indian stock market also attaches great importance to the interests of retail investors. First of all, T+0 is implemented for retail investors, while T+3 is implemented for institutional investors. Therefore, if there is a risk, retail investors can withdraw before the institutions. Secondly, whether they are individual shareholders or institutional shareholders, there are strict regulations on large-scale shareholding reductions.

Long-term investment rules

For long-term investors, after holding stocks for more than one year, they may not reduce their holdings by more than 25% in the first year, by 15% in the second year, and by 10% in the third year. They will not be able to reduce their holdings until after the fourth year. You can reduce your holdings freely.

Related articles

The following is an overview of the development of new innovative technologies in some important countries in my blog, or brief articles:


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