Capital mkt’s pie in fund raising widening
Indian markets are resilient to global geo-political and economic shocks as Nifty, Sensex rose by 26.8%, 25%, respectively in FY24 as against decline of 8.2% in FY23
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Fund Mobilisation :
- No of IPOs rose 66% to 272 in FY24
- Cos raised Rs67,995 cr in FY24 as against Rs54,773 cr in FY23
- Mcap reached Rs415 lakh cr or $5 trn in May 2024, now at $5.36 trn
- Mcap-to-GDP ratio rose to 124% in FY24 compared to 77% in FY19
- Mcap-GDP ratio not necessarily a sign of economic advancement
- Mkts facilitated capital formation of Rs10.9 lakh cr in FY24 compared to Rs9.3 lakh cr in FY23
- Debt issuances accounted for 78.8%
- Fund mobilisation via equity, debt, and hybrid, soared by 24.9%, 12.1% and 513.6%, respectively
New Delhi: Capital markets are becoming more prominent in India’s growth story, with an expanding share in capital formation and investment landscape on the back of technology, innovation and digitisation, according to the Economic Survey 2023-24 tabled in Parliament on Monday. Further, Indian markets are resilient to global geo-political and economic shocks, it added.
“Despite heightened geo-political risks, rising interest rates and volatile commodity prices, Indian capital markets have been one of the best performing among emerging markets in FY24,” the Economic Survey said.
The BSE benchmark Sensex and National Stock Exchange’s Nifty-50 have given stellar returns to investors in the financial year 2023-24. The Nifty-50 index rose by 26.8 per cent during FY24 against a decline of 8.2 per cent during FY23. Additionally, 30-share Sensex has soared around 25 per cent in FY24. Moreover, the uptrend continued in FY25, with the 30-share index on July 3 touching the 80,000 mark in intra-day trading for the first time.
“The exemplary performance of the Indian stock market compared to the world and emerging markets over the years can be primarily attributed to India’s resilience to global geo-political and economic shocks, its solid and stable domestic macroeconomic outlook, and the strength of the domestic investor base,” said the document tabled by Finance Minister Nirmala Sitharaman in Parliament.
Apart from India, all the major markets, barring China and Hong Kong, delivered better returns in FY24 than the previous year. The financial year 2023-24 saw stellar performances from the US, Brazilian and Japanese markets among the global markets. There was evidence of an AI-led tech stock surge, with the tech-heavy US Nasdaq index rising by 34 per cent in FY24 after delivering heavy losses in FY23. Further, significant interest from domestic and global investors in the Indian stock market as an attractive investment destination and sustained IPO (initial public offering) activity placed the Indian market fifth in the world by market capitalisation in FY24.
