India's market capitalisation crosses Rs 100 trillion
India's market capitalisation crosses Rs 100 trillion
The Indian stock market on Friday achieved an important landmark by crossing Rs 100 trillion ($1.66 trillion) in market capitalisation.
The feat was achieved when the benchmark BSE Sensex jumped 383 points, or 1.34%, to life high of 28,822.37. On closing basis, however, the value of listed companies on the BSE closed just shy of the Rs 100 trillion-mark.
A sharp 35% rally in benchmark indices coupled with new paper issuances have helped India cement its position in the league table of top stock markets worldwide.
India's market cap has soared Rs 29 trillion, or 42%---most in the world-- so far in 2014. The journey from Rs 50 trillion market cap to Rs 100 trillion took around seven years.
"It has taken India and BSE 140 years to reach this milestone of Rs 100 lakh crores market capitalisation. However given India's potential, India should be able to achieve multiple times Rs 100 lakh crore market capitalisation in time to come," said Ashishkumar Chauhan, MD & CEO, BSE.
India is the ninth-biggest in the world in terms of market cap behind Germany, which has market cap of around $1.9 trillion.
"If the new government delivers on the economic front then one can see India rise further, given not too many countries are showing the growth/investment potential," Aashish Kamat, CEO, UBS was quoted as saying on the BSE website.
The total market cap of BSE-listed companies on Friday stood at Rs 99.81 trillion, around 90% of the last four quarter GDP figure of Rs 110 trillion. India's market cap-to-GDP ratio is way below its record high level of 143% in December, at the peak of the earlier bull market.
Sanjay Kumar Singh, CEO, BNP Paribas Securities India pointed about that India is only 10 percentage points higher in terms of 10-year average market cap-to-GDP ratio of 80%.
"With the GDP widely-anticipated to grow consistently over the next few years on the back of expected reforms and as the economic cycle turns for the better, the market cap is likely to sustain this growth trend," he said.
The total market cap of the National Stock Exchange (NSE), India's largest stock exchange in terms of trading volume, is slightly less than the BSE, the former has less number of listed companies. BSE, Asia's largest bourse, has a total of 5,529 listed companies. However, the top 500 companies account for nearly 94% of the country's market cap.
Analysts believe with India's GDP expected to grow at a faster pace going ahead, India will be able to sustain high valuations.
Business Standard
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The Indian stock market on Friday achieved an important landmark by crossing Rs 100 trillion ($1.66 trillion) in market capitalisation.
The feat was achieved when the benchmark BSE Sensex jumped 383 points, or 1.34%, to life high of 28,822.37. On closing basis, however, the value of listed companies on the BSE closed just shy of the Rs 100 trillion-mark.
A sharp 35% rally in benchmark indices coupled with new paper issuances have helped India cement its position in the league table of top stock markets worldwide.
India's market cap has soared Rs 29 trillion, or 42%---most in the world-- so far in 2014. The journey from Rs 50 trillion market cap to Rs 100 trillion took around seven years.
"It has taken India and BSE 140 years to reach this milestone of Rs 100 lakh crores market capitalisation. However given India's potential, India should be able to achieve multiple times Rs 100 lakh crore market capitalisation in time to come," said Ashishkumar Chauhan, MD & CEO, BSE.
India is the ninth-biggest in the world in terms of market cap behind Germany, which has market cap of around $1.9 trillion.
"If the new government delivers on the economic front then one can see India rise further, given not too many countries are showing the growth/investment potential," Aashish Kamat, CEO, UBS was quoted as saying on the BSE website.
The total market cap of BSE-listed companies on Friday stood at Rs 99.81 trillion, around 90% of the last four quarter GDP figure of Rs 110 trillion. India's market cap-to-GDP ratio is way below its record high level of 143% in December, at the peak of the earlier bull market.
Sanjay Kumar Singh, CEO, BNP Paribas Securities India pointed about that India is only 10 percentage points higher in terms of 10-year average market cap-to-GDP ratio of 80%.
"With the GDP widely-anticipated to grow consistently over the next few years on the back of expected reforms and as the economic cycle turns for the better, the market cap is likely to sustain this growth trend," he said.
The total market cap of the National Stock Exchange (NSE), India's largest stock exchange in terms of trading volume, is slightly less than the BSE, the former has less number of listed companies. BSE, Asia's largest bourse, has a total of 5,529 listed companies. However, the top 500 companies account for nearly 94% of the country's market cap.
Analysts believe with India's GDP expected to grow at a faster pace going ahead, India will be able to sustain high valuations.
Business Standard
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