Indian markets achieved $4 trillion market capitalization for the first time: What is market capitalization?

On Wednesday, Indian markets achieved a first: a $4 trillion market capitalization. Only the US, China, and Japan are members of the $4 trillion-plus market capitalization club at this time. Hong Kong is also a member of the group. Nonetheless, a sizable portion comes from foreign businesses, primarily from China.

What is market capitalization?

The total value of all of a company's stock shares is referred to as the market cap, also known as market capitalization. It is calculated by multiplying the market value of a stock by the total number of shares that are in circulation. For example, a company with 20 million shares at $50 apiece would have a $1 billion market capitalization.

Combined Market Value of all companies holds at a Rs. 333 trillion

At present, the combined market value of all companies listed on the BSE stands at a record-breaking Rs 333 trillion, or $4 trillion.

US Market holds highest market capitalization

With a market capitalization of nearly $48 trillion, the US equity market is by far the biggest in the world. China ($9.7 trillion) and Japan ($6 trillion) are next in line.

India’s Market cap has increased by 27% since April

Based on data from Bloomberg, India's market capitalization has increased by almost 15% this year, while China's has experienced a 5% decline in its market capitalization. With a growth rate of 17%, the US is the only market in the top-10 market capitalization club that has expanded more quickly than India. This year, the total value of the global market has increased by 10% to $106 trillion.

Gains in mid- and small-cap stocks across the board are driving this year's mcap gains. From 35% at the beginning of this fiscal year, stocks outside the top 100 now account for 40% of the nation's market capitalization.

Also read: PM Modi’s 5 Remarkable Initiatives that Have Transformed the Indian Economy

Market value of companies increased significantly

India’s mcap has increased by 27% since April 1. In the meantime, the market value of companies outside the top 100 has increased by 46% to Rs 133 trillion, while the cap of the top 100 has grown by 17% to Rs 195 trillion.

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