Another milestone

Stock valuations have increased substantially

The market capitalisation of companies listed on BSE crossed the threshold of $5 trillion for the first time on Tuesday. This has made India the fifth member of the $5 trillion market-cap “club” after the US, China, Japan, and Hong Kong. At around $3.9 trillion, India has a lower gross domestic product (GDP) than the US ($25.5 trillion), China ($18 trillion) and Japan ($4.2 trillion), while Hong Kong is famously a free-market economy with a convertible currency and listings of many corporate entities based in Mainland China. Importantly, from an investor’s perspective, India’s market cap substantially exceeds its GDP. While