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India's market value has increased to $3.31 trillion, placing it back in the top 10 most valuable nations on the international stock market.
The remarkable growth in market capitalization marks an increase of nearly $330 billion since the beginning of this year.
The resurgence in India's ranking follows a broad-based rally in local equities, driven by sustained buying from foreign investors and improving macroeconomic conditions. In January, India briefly lost its fifth spot to France but has now reclaimed the position owing to the positive performance of its stock market.
Since March 28, Indian equity markets have witnessed a rally, with significant gains recorded across various sectors. The Sensex and the Nifty, the benchmark indices, have surged by nearly 10 per cent, while the BSE MidCap and SmallCap indices have climbed approximately 15 per cent. The BSE Bankex has also witnessed a robust rise of almost 13 per cent.
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Foreign investors have been buying Indian equities, with a total investment of nearly $6.3 billion in the past two months alone. This influx of foreign capital has contributed to strong market performance and increased market capitalization in India.
Despite its impressive growth, India's market capitalization still trails behind the United States, China, Japan, and Hong Kong. The US remains the global leader with a market value of $44.54 trillion, followed by China with $10.26 trillion and Japan with $5.68 trillion. With a market value of $5.14 trillion, Hong Kong is in fourth place, and France is now in sixth place with a market value of $3.24 trillion.
Leading global brokerage firm Jefferies recently expressed confidence in India's long-term growth prospects, projecting that the benchmark Sensex could cross the milestone of 100,000. The projection is based on sustained earnings per share (EPS) growth assumptions and stable price-to-earnings (PE) multiples.
India's remarkable rise in market capitalization reflects growing investor confidence in its economic potential and positions it as an attractive destination for global investments.
—Kritika Singhal
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