The size of Indian stock market is measured in terms of total valuation of all the listed shares, which are currently lingering at USD 1.026 trillion (USD 1 = Rs. 52.30). This could change in a blink of an eye if the value of rupee depreciates and gets back to 54 level against USD or the BSE Sensex sinks by 350-400 points in the coming week.
The Trillion Dollar club is the league of 14 major economies of the world with a nominal GDP of more than USD 1 trillion per year. Other than India, the unofficial members of league include the US, the UK, Canada, Brazil, Australia, Hong Kong, South Korea, China, Japan, Spain, Germany, Switzerland and France.
The measures taken by RBI in the last trading session couldn't stop the Sensex to nosedive but its engagement in the rupee movement helped India to stay afloat and secure its membership to the trillion dollar club for the time being.
India has been in and out of this elite club before too. The trillion dollar membership was first achieved on May 28, 2007 but it moved out after almost a year, on July 1, 2008. India was close to breaching the 2 trillion dollar mark twice in the past- first in early 2008 and then again in the early part of 2011.
But the recent instability in the global markets and sagging investor sentiments about the Indian economy could once again steer the markets out of the trillion dollar club.
Dion Global Solutions Ltd