India Climbs to No 8 in World’s Top Stock Markets

The year 2020 changed plenty of preconceived notions, be it on the idea of pricing a commodity like oil, the length of the short-lived bear market after the COVID ‘correction’. Yet, India’s rank in the world’s top stock markets has improved. India, which began the year ranked No 10 global stock markets in terms of aggregate market capitalisation, ended the year at No 8. Such a recovery looked impossible on March and April when India slipped out of top 10 markets. The sharp correction in equity markets in March saw India’s aggregate market capitalisation fall over 25 per cent in dollar terms.

On March 23, India slipped out of top 10, the day when Sensex shed over 13 per cent. India’s aggregate market cap declined to $1.31 Trillion (in $ terms). Since then, Indian equities have doubled aggregate market value ($1.23 Trillion from the March lows) and crossed $2.5 Trillion on December 28. On the full-year basis, India market capitalisation gained 17.4% amidst the COVID crisis. India’s share in the aggregate global market capitalisation remains largely unchanged.

Among the other top 10 countries, only China and the US increased their share in world market value. China’s market-capitalisation grew 48.5 per cent while the US market capitalisation rose by 24 per cent. The outperformance of China would have been even higher had the Ant Group’s $37 Billion IPO not been halted in the final stage.

The rally in global markets in 2020 has been driven by liquidity surplus and the low-interest rate regimes by central banks. While there are concerns over overvalued assets and froth in the markets, several indicators hint at broad-based recovery and earnings recovery. The emergency usage approvals to two vaccines – Covishield and Covaxin, in India, have pushed markets to record high levels yet again as the new year begins with resilience on Dalal Street.

Source: TOI