Home Business Market Capitalization: India’s global market capitalization is at its highest

Market Capitalization: India’s global market capitalization is at its highest

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After becoming the fifth largest economy in the world, India is now also the fifth largest stock market. While global stocks tumbled under the weight of two “Black Swan” events – the Covid pandemic and the war in Ukraine – India’s stock market firmly in 2022.

The relative outperformance has boosted India’s share of global rankings market capitalization to an all-time high of 3.5%, rebounding from a low of 2.05% on May 19, 2020, following a pandemic-induced collapse in stock prices.

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  • India is strong economic growth makes the country attractive
  • Indian markets disconnected from other markets in the short term
  • Strong FII flows have been driving the markets since August
  • The MSCI India Index has outperformed the MSCI Emerging Mkt Index by 27% over the past 12 months

WHAT DOES IT MEAN

  • Share growth due to relative performance
  • In absolute terms, the Indian market was almost flat
  • High valuations mean that the Indian market is more at risk in the event of adverse events
  • High US interest rates and a strong dollar are key risks
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