BSE-listed companies' market cap hits $5 trillion for first time
What's the story
The Bombay Stock Exchange (BSE) has witnessed a historic milestone as the market capitalization of its listed companies surpassed $5 trillion for the first time today. Despite the Sensex index being 1.66% below its all-time high, both BSE Mid and Smallcap indices have reached new peaks. The total market cap now stands at over ₹414.46 trillion ($5 trillion), marking an increase of more than $633 billion since the start of this year.
Steady growth
BSE's market cap journey: From $1 trillion to $5 trillion
The journey of BSE's total market capitalization has been steady and impressive. It first reached the $1 trillion mark in May 2007, doubled to $2 trillion by July 2017, and hit the $3 trillion milestone in May 2021. The leap from $4 trillion in November 2023 to over $5 trillion was achieved in just six months, reflecting a robust growth trajectory for Indian stock markets.
Global ranking
India joins elite $5 trillion club in global stock markets
In terms of global ranking, India now joins an exclusive club of countries with stock markets valued at over $5 trillion. This elite group includes only four other stock markets: the US, China, Japan, and Hong Kong. The US leads the pack with a market cap nearing $55.65 trillion, followed by China ($9.4 trillion), Japan ($6.42 trillion), and Hong Kong ($5.47 trillion). This achievement underscores India's growing prominence in the global financial landscape.
Growth comparison
India's market capitalization outpaces US and Japan in 2024
India's market capitalization has seen a nearly 12% rise so far in 2024, outperforming the growth rates of both the US and Japan. The US m-cap has grown by 10%, while Japan has seen a rise of just 3%. This surge in Indian equities' m-cap is primarily driven by an increase in broader market indices, despite recent volatility in equities. While Sensex has risen by just 2.3% year-to-date, BSE Midcap and Smallcap have increased by 16.3% and 11.5%, respectively.