India top performer among 5 mkt biggies

Since 1956, it took 51 years for BSE to reach $1-trillion milestone, 10 years to reach $2-trn mark. Then it took four years for $3 trn, over two years for $4 trn and six months to scale $5-trn peak. And just over two months for adding $0.50 trn to mcap

umbai: India is the best-performing stock market among the top-five globally, and it delivered over 25 per cent return (in terms of market cap) from the beginning of 2024. Due to a stellar rally, the total market capitalization (mcap) of BSE-listed companies reached Rs462.38 lakh crore (over $5.5 trillion) on Wednesday (July 31, 2024).

During this period, the US stock market surged 13.50 per cent, Hong Kong rallied 4.15 per cent, Japan surged 4.02 per cent, and the China stock market gave a 13.61 per cent negative return.

The US is the world’s largest stock market with a market cap of $57.28 trillion. After this, China is in second position with a market cap of $8.24 trillion, Japan is in third position with a market cap of $6.49 trillion, and India is in fourth position with a market cap of $5.51 trillion. Hong Kong is the world’s fifth-largest stock market with a market cap of $4.92 trillion. 

Established in 1875, Bombay Stock Exchange (BSE) is the first ever stock exchange in Asia. The BSE was the first in India to be granted permanent recognition under Securities Contract Regulation Act-1956. Since then, it took 51 years to reach $1-trillion milestone, 10 years to reach $2 trillion mark. Then it took four years for $3 trillion, over two years for $4 trillion and six months to scale $5-trn peak. And just over two months for adding $0.50 trillion to mcap.

The market capitalisation of the stock market crossed $1 trillion for the first time on May 28, 2007. After the next 10 years, it reached $2 trillion on July 10, 2017, and after the next four years it reached $3 trillion on May 24, 2021, and then after more than two years, it reached $4 trillion on November 30, 2023, and in the next six months, the $5 trillion mark was crossed on May 24, 2024.

The meteoric rise in the Indian stock market is due to the strong performance of the GDP. In the financial year 2023-24, GDP grew at the rate of 8.2 per cent and the Economic Survey reported that GDP may grow at the rate of 7 per cent in the financial year 2024-25.