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  1. India’s show of strength in global market-cap share

India’s show of strength in global market-cap share

While the bellwether Sensex has scaled multiple highs this year, the combined market value of Indian...

By: | Mumbai | Updated: November 15, 2014 12:54 AM
Sensex has scaled multiple highs this year. (Reuters)

Sensex has scaled multiple highs this year. (Reuters)

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.

Asset

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

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