India Tops Hong Kong as World’s Fourth-Largest Stock Market (3)

India’s stock market capitalization has overtaken Hong Kong’s for the first time as the South Asian nation’s growth prospects and policy reforms make it an investor darling while global capital pours out of China.

The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. That makes India the fourth-biggest equity market globally. Its value crossed $4 trillion for the first time on Dec. 5, with about half of that coming in the past four years.

Equities in India have been booming, ...