India's $4 Trillion Market Cap Dream Inches Closer

The recent buzz about India reaching a $4 trillion economy may have been unfounded, but the country's equity market is on the brink of this milestone. The total market capitalization of all BSE-listed stocks hit a record high of Rs 328.33 lakh crore, equivalent to $3.94 trillion.

To reach $4 trillion, India needs to add approximately Rs 5 lakh crore to its market cap. This could happen through sustained growth or a single robust trading session. Currently, India ranks fifth globally in market value, trailing the US, China, Japan, and Hong Kong. While India's GDP is estimated at $3.7 trillion.

Experts predict the country could become a $7 trillion economy by 2030. Market participants anticipate significant growth, with Nifty and Sensex potentially doubling in the next five years. Factors such as the outcome of state Assembly elections, reduced threats from rising bond yields, crude oil prices, and a slowing pace of Foreign Institutional Investor (FII) selling contribute to the optimistic outlook for India's market cap nearing the $4 trillion mark. However, achieving a $4 trillion GDP may take until FY25.

Following the list of market cap, rest of the other countries like France, United Kingdom, Canada, Saudi Arabia, Germany stands at top 10 in market value globally. Meanwhile, Nepal is still at the growing phase and has shown a positive growth resulting in market capitalization of $21.56 billion as of 23rd November, 2023. 

Source: The Economic Times