India is presently the world’s 6th greatest stock market, surpassing France without precedent for market capitalization, with the benchmark Sensex surging over 23% this year.
India’s market cap remained at $3.4055 trillion on Tuesday against $3.4023 trillion in France, as indicated by Bloomberg information. India posted the greatest increase in market esteem this year, adding more than $873.4 billion or an ascent of 35% from $2.52 trillion on 31 December 2020. Since the March 2020 low, India added almost $2.08 trillion market cap or a 159% increase. In 2020, it added a $373 billion market cap or gains of 17.4% from $2.14 trillion.
The US stock market is the world’s generally esteemed with a market cap of $51.3 trillion, followed by China ($12.42 trillion), Japan ($7.43 trillion), Hong Kong ($6.52 trillion) and the UK ($3.68 trillion).
“Strong liquidity and positive macroeconomic cues are also likely to support domestic markets to continue their movements to record levels. The consumer demand will be closely monitored as it is expected to pick up, given the festive season has begun and the restrictions are continuing to ease. However, concerns on the third wave of the (covid-19) pandemic still hover,” Motilal Oswal said in its report on Wednesday.
Both Sensex and Nifty progressed 23% and 25%, individually, year-to-date, while unfamiliar and homegrown financial backers purchased stocks worth $8 billion and ₹23,532 crore. Proceeded with foreign investor flow with a sharp improvement in key economic indicators like the list of industrial production for July, which was 11.5% (higher than consensus estimate), nearly coming to pre-pandemic level additionally offers solace, investigators said. Further, the facilitating of retail inflation to 5.3% for August looks good. This should help the Reserve Bank of India keep up with its delicate monetary policy position to help the continuous recuperation in economic momentum.
Better-than-expected gross domestic product and goods and services tax (GST) assortment show a manageable bounce back in earnings. This should assist the market with supporting the premium valuations. The GST council is probably going to meet on Friday to settle on the consideration of diesel and petrol under the GST system.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Planet Economic journalist was involved in the writing and production of this article.
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