India's share in world equity mcap declines to 18-month low of 3.63%

Combined mcap of country's listed companies down nearly $1,050 bn since September-end

India’s share in the world market capitalisation (mcap) has seen a sharp decline in recent months amid continued underperformance of the country’s equity market. India’s share has gone down to hit an 18-month low of 3.63 per cent from its 

all-time high of 4.64 per cent at the end of July last year. 

The share of India in the world mcap stood at 4.18 per cent at the end of December 2024, and 4.52 per cent at the end of September last year, when the benchmark indices peaked. The combined mcap of all BSE-listed firms was around $4,612.9 billion on Friday, down 10.6 per cent from $5162.2 billion at the end of 2024, and 18.5 per cent from an all-time high of $5,660.4 at the end of September 2024. The combined mcap of all listed companies in the country has fallen by nearly $1,050 billion since the end of September 2024. The amount is equivalent to around 27 per cent of India’s current gross domestic product of around $3,836 billion during FY25. In comparison, the global equity mcap continues to rise and is now at an all-time high of $127.08 trillion, up 2.8 per cent from $126.85 trillion at the end of December 2024, and $125.3 trillion at the end of September 2024. 

The rise in world market capitalisation has been led by the US market, followed by China, and Hong Kong markets. The mcap of the US equity market jumped 15.4 per cent year to date (YTD) in 2025 to $63.82 trillion from $55.3 trillion at the end of December 2024. Chinese stock market capitalisation rose 12.5 per cent YTD to $10.2 trillion, while Hong Kong’s mcap soared 17.6 per cent to $5.6 trillion. Among the top five markets, Japanese market capitalisation fell 2.9 per cent YTD to 6.5 trillion from $6.7 tril­l­ion at the end of December 2024. 

 

Despite the recent decline, India’s share of the world’s market capitalisation is still higher than its share of global GDP. India is expected to account for 3.5 per cent of the world GDP at current prices in FY25 — an all-time high figure and up from its share of 3.4 per cent at the end of FY24, and 3.1 per cent prior to the pandemic in FY19. India’s GDP at current price in US dollars is expected to grow by 7.5 per cent to reach $3,836 billion in FY25 from $3,568 a year ago, according to data from the National Statistical Organ­isation (NSO). 

In comparison, the world GDP at current prices was estimated to grow by 4.1 per cent to around $110.06 trillion in 2024, up from around $105.7 trillion in CY23. Historically, India’s market capitalisation has grown in pace with the rise in the country's GDP, the country’s share of the world mcap has mostly been lower than its share of the world GDP at current prices. In the past, whenever India’s market cap share overshot the GDP share, it was followed by a period of correction, as was seen in 2012 and 2013 and the one going on currently. This suggests a further downside in the Indian equity market.