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 name | Business area | Main investors |
| BigBasket | eCommerce | Alibaba |
| Bill Desk | Simplify of billing payment | |
| Byjus | K12 education | Tencent |
| Cred | Fintech | |
| Delhivery | Logistic | |
| Dream11 | Online sport and gaming | Tencent |
| Druva | Digital security | |
| Freshworks | CRM | ticker: FRSH |
| Flipkart | ecommerce, retail | Walmart, Tencent, Microsoft, Softbank |
| Future Group | ecommerce, retail | Amazon.com |
| Groww | Investment platform | |
| Gupshup | Chatbot | |
| Hike | Social network | Tencent |
| Icertis | Contract management | |
| InMobi | Mobile advertisement | |
| Jio | Social network | |
| Meesho | Social network | Facebook, Softbank |
| Mikemytrip | Online ticket, hoteling | Ctrip.com |
| MLP | Online game, eSport | Alphabet, Sequoai |
| Mohalla | App development | |
| Mu Sigma | Big data | Softbank |
| Ola | Ride hailing | Tencent, softbank |
| Lenskart | Online eyewear | Softbank |
| Loa Electric | EV | |
| Oyo | Ride hailing | Didi, Microsoft, Huazhu Hotels Group |
| Oyo Room | Online hoteling | |
| PayTM | Fintech | Alibaba, Berkshire Hathaway, Softbank |
| PayTM Mal | ecommerce, retail | Alibaba |
| PhonePe | UPI payment | Flipkart |
| Pine Labs | POS devices | |
| Policy Bazaar | Online insurance | |
| Quikr | News aggregation | |
| Reliance Retail | ecommerce and retail | Amazon.com |
| ReNew Power | Renewable energy | |
| Rivigo | Logistics | |
| ShareChat | Social network | Alphabet, SnapChat, Microsoft |
| Snapdeal | eCommerce | Alibaba |
| Swiggy | Food delivery | Tencent, Meituan, Hillhouse Capital |
| Udaan | B2B trading platform | Tencent |
| Zomato | Food delivery | Ant 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.
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!
Regulations
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:
- “India stock tripled in three years to US$3.56 trillion, ranking fourth in the world“
- “2024 global stock markets return by country“
- “Indians are the CEOs of 30% of the Fortune 500 listed companies in the United States“
- “Booming India stock market and the emerging Indian tech giants“
- “Indians do well in the US, India’s weak and uncompetitive industries“
- “Global stock markets performance comparision over the past 30 years in a table“
- “Venture capital and unicorns introduction“
- “Global Venture Capital and Unicorn Report“
- “Let’s talk about TikTok “
- “Failed Taiwan Software Industry Policy“
- “The hardware and software gap between China and US, is all China-made software and hardware possible?“
- “Japan is already a country of mediocrity, not as advanced as you think“
- “South Korea’s emerging technology giant“
- “Beyond your imagination of Israel’s strong venture capital and tech strength“
- “Reasons of the success Israel’s technology nation“
- “Israel stock market and tech giants“
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