After ceding the tag of the fastest-growing major economy, India has now moved out of the $2-trillion market capitalisation club. The combined market value of all domestically-listed stocks stood at $1.95 trillion on Monday, following a sharp drop in the rupee against the dollar and a slide in the markets. Indian markets have lost nearly $250 billion in market value since the Union Budget.
The increase in tax surcharge, introduction of the buyback tax and a lack of stimulus to boost economic growth have left investors disappointed.
India, by far, is the worst-performing major market in the past one month, having declined 11 per cent in dollar terms. India’s peak dollar market cap was $2.45 trillion in January 2018, when its rank had climbed to seventh globally. At present, India is the ninth-biggest market in terms of market cap.