After the boom, the country's GDP to market cap ratio is at a fifteen-year high

Mumbai: Due to the boom in the Indian stock market, the share prices of listed companies have increased so fast that the market cap of the shares listed in the stock market has increased much more than the country's gross domestic product (GDP).

Following the equity rally, the GDP-to-market cap ratio has risen to a fifteen-year high of just over 140 per cent.

The ratio of GDP and market cap was 95.80 per cent at the end of March 2023. The market cap of companies listed on the BSE crossed Rs 420 lakh crore on Thursday. The country's GDP is estimated to be Rs 296 trillion at the end of financial year 2024.

Thus, the ratio of market cap to GDP is seen to be more than 140 percent. Earlier, in December 2007, the ratio of GDP to market cap was slightly more than 149 percent. Which is the highest level till date, in December 2007, the market cap of the country's equity was Rs 71.70 trillion and the GDP figure was Rs 48 trillion. However, after this, extreme volatility was seen in the Indian stock market.