At 88%, India's market cap-to-GDP ratio is now highest in 12 quarters

In the past 15 years, the ratio has ranged from a low of 52 per cent in March 2005 to a record high of around 150 per cent at the end of December 2007

The Indian equity market continues to scale new highs, moving in tandem with the upswing in global markets after the election victory of Joe Biden in the US Presidential elections. On Saturday, the combined market capitalisation (m-cap) of all listed and traded companies on the BSE reached a fresh all-time high of Rs 169.3 trillion — nearly Rs 6 trillion higher than the pre-Covid high of Rs 163 trillion.

As a result, there has been sharp rise in India’s m-cap-to-gross domestic product (GDP) ratio — a key ratio used by many analysts to gauge the valuation of the broader equity