- Indian markets achieved a historic $4 trillion market cap milestone for the first time.
- China’s market cap has decreased by 5% this year, but India’s has increased by almost 15%.
- This year, the total value of the global market has increased by 10% to $106 trillion.
With the US, China, and Japan as the only other countries in the $ 4 trillion-plus market cap club, Indian markets achieved a historic $4 trillion market cap milestone for the first time.
With a major contribution from Chinese businesses, Hong Kong is also a member of the club. The combined market value of all companies listed on the BSE is Rs 333 trillion.
Indian markets
China’s market cap has decreased by 5% this year, but India’s has increased by almost 15%. With a growth rate of 17%, the US is the only market in the top-10 market cap club that has expanded more quickly than India.
This year, the total value of the global market has increased by 10% to $106 trillion. Gains in the overall market drive the gains in mid-and small-cap stocks.
The share of stocks outside the top 100 in the nation’s market capitalization has increased to 40% from 35% at the beginning of the current fiscal year. India’s Market Cap has increased by 27% since April 1.
The market value of companies outside the top 100 has increased by 46% to Rs 133 trillion, while the cap of the top 100 has increased by 17% to Rs 195 trillion.
In the Asia and Emerging Market (EM) basket, reaching the $4 trillion market capitalization milestone will enhance India’s reputation as the market leader. India is a market that stands out due to its robust earnings, macroeconomic stability, and domestic flows.
About six international brokerages, including CLSA, JPMorgan, Morgan Stanley, and Goldman Sachs, have suggested increasing the allocation to India in the EM and Asia Pacific (APAC) basket in recent weeks. India has the best prospects for structural growth in the region.
However, despite the possibility of increased market volatility due to external shocks such as higher longer-term interest rates, a strong dollar, slower growth in China, and increased geopolitical uncertainty, India is less vulnerable to these events than other countries.
