India's Equity Markets Achieve $5.29 Trillion Market Capitalization in 2023, Ranking Fourth Globally
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Mumbai, Dec 26 (NationPress) India’s equity markets have reached new heights, establishing the country with a market capitalization of $5.29 trillion this year, ranking it as the fourth largest market cap globally after the US, China, and Japan, according to a report published on Thursday.
Benchmark indices Nifty and Sensex achieved record highs of 26,277.35 and 85,978.25, respectively, this year, as per the findings of Pantomath Group, a prominent financial services firm.
The GDP growth rate was recorded at 8.2 percent in FY24, exceeding expectations, although inflation and weak consumer demand hindered growth in the first half of FY25.
“A rebound is expected, fueled by government expenditure, private investments, and a revival in rural growth,” the report stated.
Madhu Lunawat, CIO and Fund Manager at Bharat Value Fund, highlighted numerous opportunities for both domestic and international investors, including AIF, PMS, Mutual Funds, etc., for medium-term investment strategies to engage in India's long-term growth narrative.
“Investors' inclination towards equity as an investment option, based on their risk appetite, has been consistently increasing over the past few years compared to earlier times. Such sustainable fund inflow from diverse investors is a positive indication, and this liquidity will assist the market in weathering any corrections or declines,” Lunawat remarked.
The Indian agriculture sector is poised for growth, propelled by the ‘Vision 2047’ roadmap, which advocates for sustainable farming practices, crop diversification (notably millets), and climate-resilient seeds.
The automobile industry saw a 10 percent increase, reaching Rs. 6.14 lakh crore, with a strong emphasis on electric vehicle adoption and exports anticipated to hit $30 billion by FY26, the report indicated.
India remains dedicated to achieving net-zero emissions by 2070 and 50 percent renewable energy by 2030, supported by the National Green Hydrogen Mission and full Foreign Direct Investment in renewables.
“Corporate earnings in India are projected to improve further. Increased government capital expenditure will lead to a revival in overall GDP growth, with companies benefiting from a reduction in commodity prices, resulting in enhanced profitability and margins,” stated Devang Shah, Head of Retail Research at ACMIIL.
Companies are expected to maintain strong performance in the forthcoming quarters, driven by a robust domestic demand landscape, favorable macroeconomic conditions, and a revival in private capital expenditure, Shah added.
