India’s stock market valuation surpasses $4 trillion, ranks fourth globally

India’s stock market has hit a new milestone, with its valuation now exceeding $4 trillion, elevating its global rank to the fourth position. This achievement is attributed to a sustained equity rally that began in late 2013 and a series of high-value Initial Public Offerings (IPOs). The Bombay Stock Exchange (BSE) now boasts over 500 companies each valued at more than $1 billion, despite experiencing a market correction in December 2018.

The market’s exponential growth trajectory includes a significant leap of over 50% from December 2014 to December 2017. Additionally, there has been a notable rebound starting late March of this year. A closer look at the composition of the billion-dollar club reveals that private sector firms have nearly doubled their presence since December 2014, growing from just under one-fifth to now more than one-third.

The performance across different segments of the market has varied, with large-cap indexes showing moderate growth in comparison to their mid- and small-cap counterparts, which have seen surges of approximately double the rate or more within just one year.

Driving this wealth creation are key sectors such as Finance, which includes nearly fifty firms. Capital Goods and IT/Pharma each contribute thirty enterprises to the tally, while close to thirty banking institutions also add to the impressive count. These sectors have collectively propelled the Indian stock market to new heights, reflecting the country’s robust economic progress and investor confidence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.