This makes India the fifth country/region to join the exclusive $5-trillion m-cap club, alongside the US, China, Japan and Hong Kong.Today i.e. on 21st May, the Indian stock market has touched the figure of 5 trillion dollars (about 416 lakh crores) for the first time. The market has achieved this feat at a time when Foreign Institutional Investors (FIIs) are withdrawing their money from the Indian market due to the Lok Sabha elections.
However, on a closing basis, India’s mcap, which represents the combined market value of all firms listed on the BSE, stood at $4.97 trillion (Rs 414.6 trillion). The National Stock Exchange (NSE), a larger exchange with fewer listed companies, reported a combined mcap of $4.93 trillion, or Rs 411 trillion.
Growth in India's Market value
The growth in India's market value has enhanced its influence on the global stage and attracted higher inflows from foreign investors, particularly those investing via exchange traded funds (ETFs). India is now the second-largest market in the MSCI Emerging Markets Index, after China, with a weighting of nearly 19 per cent, up from just 8.2 per cent in 2018.In the first three months of 2024, India-dedicated global funds have channelled over $8 billion into domestic stocks.
Currently, India contributes 4.19% of the world's market capitalisation, which has increased from 3.6% at the beginning of the year. Since Jan 1, 2024, India's overall market capitalisation has gained 11.5%, or ₹42.4 lakh crore.
Market cap of companies listed on BSE increased
The combined market cap of all companies listed on the Bombay Stock Exchange (BSE) rose to Rs 416 lakh crore during the day's trading. It took less than 6 months for Dalal Street to go from $4 trillion on November 29, 2023 to $5 trillion on May 21. India is the fifth largest stock market in the world after Hong Kong, Japan, China and America.
Amit Shah also expects market boom
Earlier in an interview, Home Minister Amit Shah had said that I cannot predict the movement of the stock market, but generally whenever a stable government is formed at the Centre, a rise is seen in the market. I think BJP will win more than 400 seats, a stable Modi government will come and thus the market will rise.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by the stock price. Market cap is used to categorize the shares of companies.