India's market capitalisation to GDP ratio at 115%; highest since 2008

Combined m-cap of all listed firms has doubled since last March to Rs 226.5 trillion

The Indian equity market continues to race ahead of macroeconomic fundamentals. While the Indian economy recorded its worst performance in 70 years last fiscal, the market capitalisation of listed equities has grown to an all-time high. This has resulted in India’s market cap to gross domestic product (GDP) ratio touching a 13-year high of 115 per cent.

This is the highest level for the ratio since December 2008, when it reached a record high of 150 per cent. In comparison, the ratio hit an 11-year low of 56.8 per cent at the end of March last year, and was close to