What is the total market cap of the Indian Share Market
Sign Up to our stock-market-based Q&A Platform to ask questions, answer people’s questions, and connect with other people.
Login to IndianStox.com (Q&A Engine) to ask questions, answer people's questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Market cap of the Indian Stock Market
Indian stock market capitalisation is in the seventh position across the stock markets in a global scenario.
Statistical figures affirm that India’s stock market capitalisation reached $3,739.930 billion in August 2023 and touched $2.7 trillion by the end of October 2023.
The Indian stock markets crossed three benchmarks and maintained a position within the first ten largest world’s stock markets when referred to their market value.
In 2021, local equities stood up to add a market value of 6.9 percent taking the nation’s market capital to $2.7 trillion and then onwards, India became forerunner to Canada, Germany, and Saudi Arabia.
You can observe a dip in the market capitalisation from August 2023 to September 2023 and it trailed from 3,739.930 USD bn to 3,728.885 USD bn.
CEIC has on record the database of market capitalisation from January 1993 to August 2023.
It was observed that the data had shown an all time high 3,739.930 USD bn in Month of August 2023 and a record low of 55.322 USD bn in the month of April 1993.
The graph above represents the market capitalisation of the equity for a period of one year, beginning from September 2022 to August 2023 in the Bombay Stock Exchange.
Usually CEIC does the currency conversion of the collected market capitalisation data from Rupee to the United States Dollar.
To conduct the rupee to dollar conversions, the period end market exchange rate of the Federal Reserve Board is taken into consideration.
What does Market Capitalisation Mean?
It is the total capital of all outstanding shares of a company rated at the existing stock market price.
Every company in the stock market is categorized that is dependent on the value of the market capitalisation. It can be large cap, mid cap or small cap.
Big companies with a large capital base are referred to as large or mega cap stocks and small companies depending on their market capitalisation are referred to as micro-caps.
Therefore, stock market capitalization is the sum total of all stocks capitalisations of the large cap, mid cap, or small cap.
Total Valuation of the Indian Stock Market
Media reports claimed that Indian stock market had touched an all time high valuation of $3.8 trillions by the end of the year 2023, thus making it to be the fifth largest stock market in the global scenario.
Stock experts say that the stock market has tripled in 3 consecutive years since March 2020.
With the global presence of G20 in India, and the visits of US President Joe Biden, and UK PM Rishi Sunak has brought about a noticeable change in the Indian Stock Markets. And, the reasons for the increase in the high valuations of the Indian Stock markets is summerised in this manner.
Indian stock markets validation proved to gear up the post covid 19, with more retailers participating in the buying and selling sessions and incidentally, the stock market valuations tucked $3.8 trillion USD. With the recent G20 summit, the market sentiments took a positive note and the summit resulted to encourage foreign direct investors buying.
Outcome of the G20 Summit:
In New Delhi, the members did differ in the issue of ongoing war between Ukraine, and the West Sanction on Russia.
Certain issues like the rail-port economic corridor that is likely to connect India-Middle East-Europe and agreement on the global biofuel alliance has encouraged investors to bet in the stock markets.
The foreign portfolio investors began to buy Indian stocks for six consecutive months, with equity assets worth ₹ 1.31 lakh crore accumulated in 2023.
The inflation had hit in the month of August 2023, the Centre for Monitoring Indian Economy (CMIE), supported by the Economic Outlook, said that consumer sentiments had affected the stock market by 1.5 percent decline in August 2023.
As the annual festive season has just begun, the economy could worsen as you will observe a surge in shopping.
The Indian stock markets rallied faster as the corporates could make impressive earnings, and several sectors could show an upward trend in economies. These sectors reflected financials, auto, consumer goods, and domestic growth.
To keep the inflation under control, the Reserve Bank of India, RBI, has kept the repo rates unaltered, and this was in reaction to the inflation figure. In July, the consumer price index, CPI, the inflation figure was an all time 15-month high (7.44percent), which became +/- 2 percent higher than the RBI set threshold of 4 percent.
However, the experts say that the retail inflation in the specified range of (7% to 7.4%) should not become a troublesome factor to the stock market investors.