India Surpasses Top 10 Markets, Reaches $4.16 Trillion Valuation with a Remarkable 25% Gain

Ira Singh
Khabar Khabaron Ki,27 Dec’23

India,the fifth largest economy,has emerged as an economic powerhouse, outpacing the world’s top 10 markets with an impressive 25% surge in valuation(the sharpest rise since 2021 and the fifth straight year of growth) , reaching a staggering $4.16 trillion this year. This substantial growth in valuation reflects the resilience and dynamism of India’s economy amidst global challenges.

Indian equities performance so far this on the back of robust macroeconomic fundamentals and fund flow from foreign and domestic institutional investors as Dalal street bulls braved headwinds like higher interest rate, geopolitical tensions,and volatile crude oil prices, believe experts.In 2023, the Sensex and the Nifty jumped 17.3 percent and 18.5 percent, while BSE Midcap and SmallCap indices surged 43 percent and 46 percent, according to estimates.

China, recognized as the world’s second-largest market at $10.57 trillion, has encountered substantial economic challenges, registering an 8.81% decline in 2023.China’s Shanghai Composite (China) fell 5.7 percent in 2023. This downturn comes amidst a confluence of factors, including a severe property crisis and a sluggish recovery from the enduring impacts of the Covid-19 pandemic.The US market,leading with a valuation of $50.35 trillion dollar rallied too with a 22.61 percent expansion, as the Fed rate fears abated,inflation cooled off, and the job market continued to be resilient. Its Dow Jones Industrial Average (DJIA) gained 12.8 percent through the year.

Indian market rides on bullish economy
India’s strong performance, supported by a strong economy, has lifted the nation’s contribution in global market capitalisation to 3.77 percent in 2023 so far from 3.4 percent last year, according to estimates.

The first half of FY24 saw GDP growth at 7.7 percent, driven by strong performances in the manufacturing and investment sectors. This prompted the Reserve Bank of India (RBI) to revise the FY24 GDP forecast to 7 percent. For FY25, the RBI projects a 6.5 percent average growth in the first three quarters, according to information.

These optimistic GDP projections support analysts’ bullish stance on the market, backed by a robust high-frequency data such as GST collections, auto sales, power demand, and manufacturing and services growth rate.

India’s current account deficit narrows to $8.3 billion in July-September
India’s current account deficit (CAD) narrowed to $8.3 billion in the second quarter of 2023-24, according to data released on December 26 by the Reserve Bank of India (RBI).As per the data, the CAD in July-September amounted to 1.0 percent of India’s GDP.

“Underlying the lower current account deficit on a year-on-year basis in July-September 2023 was the narrowing of merchandise trade deficit to $61.0 billion from $78.3 billion in July-September 2022,” the RBI said.

India’s exceptional performance, surpassing the valuations of top 10 markets, not only signifies its economic prowess but also presents opportunities for further expansion and collaboration on the international front. As the nation continues on this trajectory, it stands poised to play an increasingly influential role in shaping the global economic landscape.The monumental leap to a $4.16 trillion valuation marks a historic moment for India, showcasing its potential and heralding a new era of growth and opportunity on the world stage.