Indian Stock Market Achieves Historic Milestone: Hits $4 Trillion Market Capitalization

Ira Singh
Khabar Khabaron Ki,30 Nov’23

Much ahead of the Indian GDP hitting $4 trillion, Indian equity market on Wednesday has witnessed an extraordinary feat as the collective market capitalization of all BSE-listed stocks crossed the historic $4 trillion mark for the very first time.

Among global markets, the Indian stock market is ranked fifth in terms of market value, behind the US, China, Japan and Hong Kong.As India is moving up in the world’s economic order, foreign broking firm CLSA expect India’s searing GDP growth to propel it to the top three of the globe’s largest economies, from just $3.4 trillion today to larger than Japan’s by 2027, hitting $29 trillion by 2047 and $45 trillion by 2052, according to estimates.

While Nifty is up over 10% so far in the calendar year, India’s m-cap has increased by about Rs 51 lakh crore in 2023 led by the outperformance of small and midcap stocks as well as a flood of IPOs on Dalal Street. India had joined the coveted $3 trillion club in May 2021.

India is reportedly, expected to overtake Japan in nominal GDP in US dollars by 2027. “China and the US will be the only economies that will be bigger than India by then. Looking beyond, we see the economy expanding from US$3.4tn today to US$29tn in 2047 and $45tn in 2052. If big bang reforms unleash efficiencies, India could overtake the US economy in size by 2052.

As far as Nifty and Sensex are concerned, Dalal Street bulls see the headline indices doubling in the next 5 years. Both Mark Mobius and Chris Wood, two big India bulls from the overseas market, have predicted that the Sensex will hit the 1 lakh mark in just 5 years.Surpassing the $4 trillion market capitalization mark represents an exceptional milestone in India’s financial history. This achievement reflects the resilience and attractiveness of India’s stock market, fostering a sense of optimism and renewed vigor among investors and market participants.