According to the Bombay Stock Exchange (BSE) data, India’s market capitalization to Gross Domestic Product ratio (mcap-to-GDP) has recorded growth of 15-year high of 140.2%. This increase is significantly higher compared to 95.8% at the end of March 2023.
- This exponential growth is due to 61% increase in the mcap of all companies and traded on BSE since the end of March 2023, compared to estimated 10% growth in India’s GDP at current prices in FY24 (2023-24).
Note: India’s mcap-to-GDP ratio registered growth of all-time high of 149.4% at the end of December 2007, with combined mcap of BSE listed and traded companies had reached Rs 71.7 trillion compared to India’s GDP at current prices of Rs 48 trillion.
Key Points:
i.On 21st May 2024, total mcap of the 4,357 companies available for trading on the BSE reached Rs 414.46 trillion or USD 5trillion as against India’s GDP at current prices of Rs 296.6 trillion in FY24.
ii.The total mcap of BSE listed companies had reached USD 4 trillion in November 2023 and within 6 months surpassed USD 5 trillion.
- The mcap BSE-listed companies reached USD 1 trillion in May, 2007 and it doubled to USD 2 trillion (in July, 2017) and then crossed USD 3 trillion mark (in May, 2021).
iii.The total mcap of India’s top 30 listed companies that are part of S&P BSE Sensex increased to 27.2% at the end of March 2023.
iv.The combined mcap of Sensex companies increased from Rs 115.9 trillion (at the end of March 2023) to Rs 147.4 trillion (on 21st May, 2024).
v.The combined mcap of National Stock Exchange Nifty50 increased to 33.2%, from Rs 136.5trillion (at the end of March 2023) to Rs 181.8 trillion (on 21st May, 2024).
vi.The S&P BSE MidCap and S&P BSE SmallCap is increased 64% and 60.6% respectively in 2023.
- This sharp rally in small and midcaps is due to large increase of new retail investors into the equity market.
About Bombay Stock Exchange (BSE):
It is an Indian stock exchange and also Asia’s first stock exchange established in 1875.
Chief Executive Officer (CEO)– Sundararaman Ramamurthy
Headquarters- Mumbai, Maharashtra
