Indian markets overtake France to become 6th largest in the world by m-cap

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As the Indian stock markets continue their record run, they have now overtaken France to become the sixth largest markets by market capitalisation.

As per Bloomberg data quoted in media, India’s market cap has reached $3.4055 trillion as compared to $3.4023 trillion of France.

India is behind US, China, Japan, Hong Kong and the UK in market capitalisation.

The US market has a valuation of  $51.3 trillion, China comes a distant second with $12.4 trillion, followed by Japan which has a market cap of $7.43 trillion, Hong Kong which has climbed to a market cap of $6.5 trillion and the UK  has a market cap of $3.68 trillion.

It has been a one way move for the Indian stock markets right from the crash of March 2020. Even in 2021 so far, the Sensex and Nifty have advanced 23% and 25%, respectively.

Both the domestic as well as foreign investors have poured in huge amounts in equities and bought stocks worth Rs 25,530 crore for domestic investors and $8 billion for foreign investors.

As for India’s market cap, it has seen the biggest gain this year, adding over $873.4 billion. The market value has jumped 35% from $2.5 trillion recorded as of December 31, 2020. While compared to March 24, 2020, when market crashed 40% on the announcement of the lockdown post the first wave of Covid, India has seen its market cap rise 159%.

How do experts see Indian markets faring going forward ?

Hemang Jani,  Head Equity Strategy, Broking and Distribution, MOFSL

India has now become world’s 6th largest stock market post overtaking France market yesterday. Nifty has rallied 25% in CY21 so far as against 19% movement in CAC40, led by strong earnings delivery, benign liquidity and buoyant sentiments. Controlled Covid cases domestically and strong pick up in vaccination drive, has led to healthy pick-up in economic activities, thus reflecting in continuous improvement of macro data points and positive earnings expectation. Good 1QFY22 earnings delivery has boosted hopes for a solid FY22 with 30%+ projected Nifty earnings growth, on the back of a strong 15% earnings growth in FY21. 1QFY22 Management commentaries across the board suggest an improved demand environment post June’21.The consumer demand is expected to pick up, given the upcoming festive season and restrictions getting eased continuously. However, concerns on the third wave of the (covid-19) pandemic still hovers.

Rahul Sharma, Head of Technical Research, Equity 99

India has posted the biggest gain in market value this year, adding more than $873.4 billion from $2.52 trillion on 31 December 2020. Since the March 2020 low, India added nearly $2.08 trillion market cap. India is now the world’s sixth-biggest stock market, overtaking France for the first time in market capitalization. It is a great thing for Indian markets and it is expected to sustain the ranking in longrun. Currently markets are driven by various incentive schemes introduced by government with main focus on Banks, Telecom & Automobiles

AK Prabhakar, Head of Research, IDBI Capital

The future growth India would be better placed than France even after it has surpassed the nation in market capitalisation as we have a young working age population so we have demographic advantage going forward.