India’s mcap falls below $2 trillion-India out of world’s top 10 stock markets
As the corona outbreak led to a rout in the global equities, India dropped out of the top 10 stock markets. India’s benchmark indices entered a bear market, and the rupee hit a record low against the dollar, indicating fragile economic activity.
The beginning of the year saw a fall of 27.31% in dollar terms in the aggregate market capitalization of India. India fell to the 11th spot with $1.57 trillion mcap.
On March 23rd, India dropped from the 10th spot when the Sensex lost 13.15%. In rupee terms, the aggregate market cap fell 21.74% to 121.73 trillion from 155.54 trillion.
CLSA analysts claim that this bear market may have hit the point of capitulation in March, which might be followed by a point of investor dismay on equity investment.
India’s benchmark index has also lost 29.10% (in dollar terms) this year. India’s contribution to the world market cap also fell from 2.97% in 2019 beginning to 2.18%.
The INR has also weakened 6.64% against dollar. Wednesday saw a record low of 76.92 per dollar.
Global stock markets too came down to $72.07 trillion from $86.99 trillion. China, US and UK saw market capitalization losses of 1.36%, 14.66% and 30.09% respectively.