While the bellwether Sensex has scaled multiple highs this year, the combined market value of Indian companies climbed by $448 billion, accounting for more than a fifth of the $2.2 trillion increase in the global market capitalisation, shows data compiled from Bloomberg.
World market capitalisation as of November 13, 2014 stands at $64.3 trillion.
Thanks to a strong revival in investor sentiment, the Indian equity market claimed the ninth spot in world market cap ranking, replacing Switzerland in early September 2014.
Asia’s third largest economy now commands a market capitalisation of $ 1.59 trillion, about 85% of India’s GDP of $1.87 trillion, as of June 2014.
The 30-share Sensex has rallied 33% in dollar terms this year, the most among global markets as overseas investors have pumped in close to $15.2 billion in the period. This is the highest year to date FII inflow for any emerging market, Bloomberg data show.
While the US market fetches over three-fourth of total appreciation in market value of global equities, China stands ahead of India with 36% of the total gain of $2.2 trillion.
Interestingly India’s contribution of $ 448 billion is more than that of Thailand ($387 billion) and Taiwan ($355 billion) economies. It is also higher than Hong Kong’s share ($281 billion or 12.7%) in the expansion of global market value.
Meanwhile, the collective market value of economies that are losing momentum including Germany, France, and Japan has come off by $507 billion. Even the UK has seen a decline of $318 billion in its market value.
So far this year, among all listed companies, the market capitalisation of state-run ONGC increased the most, by $14.7 billion, followed by SBI ($13.8 billion) and TCS ($13.7 billion). In all, the market-cap of six companies including HDFC Bank, Sun Pharma and ICICI Bank have climbed over $10 billion in the same period.
Despite the record rally on the benchmark indices this year, the Indian market still has to cover some distance to reach its peak value of $1.9 trillion attained in January