NSE Market Capitalization Breaks Above $5 Trillion, Adds $1 Trillion In 6 Months As Nifty Hits 23,000 Mark

The market capitalization of companies listed on the National Stock Exchange (NSE) has surpassed $5 trillion (Rs 416.57 lakh crore), setting a new milestone in India's financial space. The accomplishment coincides with the Nifty 50 index reaching an all-time high of 22,993.60, followed by a further surge to cross the 23,000 milestone in morning deals today (Friday, May 24), hitting a new high of 23,004.05.

The NSE revealed that this feat was achieved in just 6 months, as NSE-listed companies transitioned from $4 trillion to $5 trillion. This exponential growth trajectory is underscored by the fact that it took them 46 months to escalate from $2 trillion in July 2017 to $3 trillion by May 2021. The subsequent leap to $4 trillion was accomplished in 30 months, reaching the mark by December 2023.

Speaking on this occasion, Shri Sriram Krishnan, Chief Business Development Officer at NSE, expressed his optimism, stating, "The increase in the latest $1 trillion in market capitalization in a very short time of around 6 months only reposes the faith of investors in the Indian economy in the years to come."

The top companies leading this surge by market capitalization include market leaders like Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank, and Bharti Airtel. However, the growth trend is not limited to these giants, as indicated by the Nifty 500 index touching an all-time high of 21,505.25 on Thursday. This broad-based growth underscores the resilience and dynamism of the Indian equity market.

Further analysis by the NSE reveals the impressive performance of the Nifty 50 index over the past decade, delivering a Compound Annual Growth Rate (CAGR) of 13.4%. Simultaneously, domestic mutual fund assets under management (both Equity and Debt) witnessed a staggering surge of 506%, growing from Rs 9.45 lakh crore in April 2014 to Rs 57.26 lakh crore by April 2024.

Foreign Portfolio Investors (FPIs) have also played a pivotal role in this growth story, witnessing their assets under management (Equity and Debt) soar by 345%, from Rs 16.1 lakh crore in April 2014 to Rs 71.6 lakh crore by April 2024.

The growth in market capitalization is not confined to top-tier companies. The Nifty100 index constituents now represent 61% of the total market capitalization, showcasing broader market participation compared to 74.9% in April 2014.

The NSE further highlighted the trend of corporate resource mobilization, particularly from Small and Medium Enterprises (SMEs) in the primary market, offering a viable alternative to traditional fundraising methods.

In the secondary market, liquidity has witnessed a significant boost in the Capital Market Segment. The daily average turnover in the equity segment has surged by more than 4.5 times, escalating from Rs 17,818 crores in FY15 to Rs 81,721 crores in FY24.

These milestones signify the realization of the vision for an Amrit Kaal, characterized by a technology-driven, knowledge-based economy, fortified by robust public finances and a thriving financial sector. As India continues its journey towards economic prosperity, these achievements serve as indicators of progress and promise for the future.