Indian Equity Market Achieves New Milestone, Market Capitalisation Hits Record $4 Trillion Mark

The Indian equity market achieved the highly craved-for milestone on Wednesday as the total market capitalisation of all BSE-listed companies hit an all-time high level of $4.01 trillion surpassing over the Rs 333 lakh crore mark, thanks to the rally in Indian equities.

At 11:44 am IST today, Sensex was up 0.72% at 66,652.45 points, while Nifty 50 was above the 20,000 market, up 0.7%.

When it comes to ranking in the global equity market, the Indian stock market is ranked fifth in terms of market value, after the US, China, Japan, and Hong Kong.

While Nifty has gained over 10% in this year so far, India's market cap has surged by almost Rs 51 lakh crore in 2023. This uplift in the country's market cap is led by the outperformance of small and midcap stocks along with a slew of IPOs hitting Dalal Street. New listings in the form of IPOs, and a rally in shares of listed companies have driven up the market cap of the Indian stock exchange.

The BSE-listed reached the $1-trillion market cap mark in May 2007. It took almost over a decade to double that as the market cap crossed the $2 trillion mark in July 2017 and joined the coveted $3 trillion club in May 2021.

The benchmark index Nifty zoomed past the 20,000 mark today as investors hoped that the Federal Reserve would start lowering rates in the months ahead.

Following a selling spree by Foreign institutional investors in the last two months of September and October, FIIs have now begun to be net buyers of Indian stocks.

According to The Economic Times Report, in the calendar year 2023, FIIs have bought Indian stocks worth around Rs 1 lakh crore while domestic institutional investors (DIIs) have outpaced dollar money by pouring in Rs 177.5 lakh crore.

India is likely to leave behind Japan in nominal GDP in US dollars by the year 2027.

As India's GDP keeps rising, the market cap is also expected to match steps or even stay ahead. As and when the GDP doubles, the m-cap will also double assuming that the market cap to GDP ratio is 100%.