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India has reclaimed its spot as the world’s fifth largest stock market after losing that status to France in January, as foreign investors snap up the Asian nation’s shares.

India’s market capitalisation stood at US$3,3 trillion as of Friday. It was helped also by a rebound in Adani Group’s stocks after a short seller report earlier in the year sparked a heavy selloff.

Meanwhile, France lost more than US$100 billion in market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE saw a rout amid fears of a slowdown in China and the US.

Global funds are piling into Indian stocks as a stuttering economic recovery in China has sparked a rotation. Foreign investors have added US$5,7 billion worth of India stocks since the start of April, lured by a stable earnings outlook and one of the highest GDP growth rates among the world’s largest economies.

Jefferies Financial Group last week raised the weighting of Indian stocks in its Asia Pacific ex-Japan model portfolio to reflect the disappointments in the Chinese stock market after a strong rally earlier this year.

The S&P BSE Sensex Index has bounced back more than 9 percent after briefly entering correction territory in mid-March, closing in on record high levels. A rebound in Adani’s stocks has gathered steam after a court-appointed panel said it found no conclusive evidence of stock price manipulation as alleged by US short seller Hindenburg Research.

Adani’s 10 listed entities added around US$15 billion to their market value last week to trim their losses post-Hindenburg’s report to US$105 billion from as high as US$153 billion earlier. -Bloomberg