look news india
New Delhi: Despite the recent fall in the stock market, India’s market capitalization to GDP ratio remains high. This ratio was recently at 147.5 percent, which is 56 percent higher than the ten-year average ratio of 94 percent. The current market capitalization to GDP ratio is close to reaching an all-time high of 154 percent at the end of September this year.
The current ratio is the third highest after December 2007 and September this year. The combined market capitalization of all BSE-listed companies has grown nearly 24 percent over the last 12 months, while India’s gross domestic product (GDP), also known as nominal GDP, grew 9.5 percent year-on-year at current prices. Is. ,
In comparison, the ratio was 126.4 percent at the end of December 2023 and 107.2 percent at the end of December 2022. The ratio fell to an 11-year low of 56.5 percent during the market selloff during COVID-19 in March 2020. The combined market capitalization of BSE listed companies is Rs. Reached 474.4 billion.
India’s market capitalization has grown at a faster rate than the country’s GDP for seven consecutive quarters since the April-June 2023 quarter. This is the second longest winning streak for market capitalization to GDP ratio after the period 2005–2007. After that, market capitalization grew faster than the country’s GDP for 13 consecutive quarters.
India’s market cap to GDP ratio is one of the highest among major economies. This ratio in India is closer to the developed markets of North America and Western Europe than to emerging economies like China, Mexico and Brazil.
