The combined market capitalisation of BSE-listed firms crossed the coveted $3-trillion mark for the first time on Monday. This is a remarkable feat, considering it had slipped below $1.5 trillion in March 2020 at the peak of the Covid-induced sell-off.
The extremely easy monetary stance has fuelled an unprecedented rally in global equities over the last one year, with many markets recording lifetime highs. India had first hit the $1-trillion m-cap mark in May 2007. It managed to double the level in 10 years. The latest $1 trillion has come at a relatively faster clip — in four years. On all three occasions, India’s m-cap/GDP ratio has been 100 per cent or more — a level considered frothy. The long-term average is 75 per cent. India’s m-cap has grown at an annualised rate of 12.8 per cent since May 2007.
However, given the rupee depreciation, the rise in dollar terms is just 8.1 per cent.
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