At $2.03 trillion, India is now the ninth largest stock market by valuation, $214 billion less than that of Canada.
The benchmark indices extended their losses to a fifth session on Monday, eroding the combined market capitalisation of companies listed on the BSE by Rs 8.5 lakh crore to Rs 147.89 lakh crore.
With Monday’s decline, the Indian stock market has lost about $437 billion in value since touching a record high capitalisation of $2.47 trillion in January 2018. This fall is second only to the contraction in the Chinese market during this period. China lost $1.75 trillion of market value since the beginning of 2018, although since its peak in June 2015 its market capitalisation had eroded 40.6% to $5.97 trillion.
At $2.03 trillion, India is now the ninth largest stock market by capitalisation, $214 billion less than that of Canada, Bloomberg data showed. Last year, India had pipped Canada to become the world’s eighth largest stock market.
Interestingly, the India’s market capitalisation loss from its peak is more than the entire market capitalisation of stock exchanges in Malaysia, Belgium, Mexico and Norway, data compiled form Bloomberg showed.
While the benchmark Sensex decline nearly 7% from its peak in August, the Canadian TSX Composite Index rallied 7.9% from its low in February.
Interestingly, the largest equity market, the US which accounts for 40.2% of the world equity market has swelled by $2.80 trillion so far in 2018 which is more the entire market capitalisation of India.
The recent sell-off in equity market combined with a weakness in the rupee has propelled India’s fall in the market cap ranking. The rupee has depreciated by 12.06% against the US dollar on a year-to-date basis, prompting foreign portfolio investors (FPIs) to take risk off the table. FPIs have offloaded stocks worth $1.2 billion in 2018 so far. Barring, January, March and July, overseas investors remained net sellers in every month of 2018.
India now comprises 2.6% of the market cap of listed global equities compared with 2.8% of Canada and 2.9% of Germany.