In a first, India's share of world market capitalisation tops 4%

The Indian equity market’s contribution to global market capitalisation (m-cap) has for the first time topped 4 per cent. Given the domestic market’s sharp outperformance to global peers over the past year, the share has risen 74 per cent in one year. 

Interestingly, during October 2021, India’s share was just 2.3 per cent, even as the domestic benchmark indices Nifty50 and Sensex logged their lifetime highs. 

Currently, the Nifty is 6.3 per cent below its record high of 18,477 made on October 18. India’s share has increased as global markets have fallen more during this period. 

At $92.8 trillion, the world m-cap is 24 per cent below its peak of $122 trillion in November 2021. By comparison, India’s market cap at $3.5 trillion is down only 3.3 per cent from the peak of $3.6 trillion. The erosion in the world m-cap is mainly driven by the US. 

The world’s largest market has seen a $13-trillion (25 per cent) wipeout, with m-cap dropping to $40 trillion from $54 trillion in November last year. The US is still the biggest contributor to global m-cap at 44 per cent, followed by China at 10.2 per cent. 

Japan and Hong Kong —where many companies based in mainland China are listed —have a share of 5.4 per cent and 5 per cent, respectively.