Stock & awe: M-cap at $5 trillion in 2023?
MUMBAI: Thanks to its 10-month-long rally, investors’ wealth, measured by BSE’s market capitalisation (m-cap), has been breaking the ceiling regularly and is currently within touching distance of Rs 200 lakh crore or about $2.7 trillion, according to exchange data.
Nifty on the NSE, which is actually ahead of BSE in terms of volume and turnover, has been following a similar trajectory.
“If it (the stock market) runs at this speed, in a couple of years we will be a $5 trillion stock market, even if we lag in becoming a $5 trillion economy by quite a distance,” a trader said, in a reference to PM Narendra Modi’s statement in mid-2019 that India would be a $5 trillion economy by 2024.
On the valuations front too, the sensex is at an all-time high price-to-earnings ratio of 34.4, compared to its 10-year average of 21.8. This ratio in essence indicates the amount in rupees an investor is willing to pay for every rupee of a company’s earnings.
Since October, foreign portfolio investors (FPIs) have net pumped in over Rs 1.6 lakh crore, or about $21.2 billion, making India the largest recipient of foreign funds among emerging markets. In comparison, mutual funds have been selling stocks aggressively with the net outflow at nearly Rs 75,400 crore, official data showed.
According to Shiv Sehgal, president—institutional client group, Edelweiss Securities—a combination of global and domestic factors has led to this rush for Indian stocks among foreign fund managers.
If this momentum continues, the mark of 5 trillion is within reach. Our markets run on sentiments, so as long as sentiments are high the markets would reach higher scales.
That's why I believe in current Govt's policies and vision for nation.
Pradip Kumar Shome
India is doing better under this government despite of IMF showing negative GDP!
Dismiss all congiebhadwa state govts and we'll become a $5T economy, not just m-cap, sooner than expected
Only if we had 20 crore less mouths to feed..
Not just that we hope India lead by Modiji will be able to back up it's economy with equal Military Might to deal with any world powers.
To day Sensex has fallen below 49k.
The stock markets can be overly inflated& overpriced, the economy can't!
Augurs well for the economy, but the government should pump in more funds into social welfare and health sectors.
DAY DREAMING LOOK AT PRESENT CONDITION OF DONT DREAM PAID NEWS BECAUSE GOVERNMENT WANT DIVERT PEOPLE ATTENTION FROM ALL SCAM CREATED BY FEKU AND TADIPAR GANG OTHERWISE
This is the 5 trillion economy modi was talking about. Acche din aa gaye
Modi govt will always have India first
Encouraging news.Let opposition read it.
Modi Magic , the way Foreing investments are coming India will sure reach 5 trillion and above . Alone Reliance brought 23 billion dollars in India during Pandemic .
Its just start for India
Bharat Farms And Factories
This is the news Indians want to hear. Not some building of statues and focus on religion. Show me the money!!! baki sab gaya bhaad mein.
Market always follows the economy. And economy is going down, so market will follow it, sooner or later.
Is this going to be minus -5 trillion dollars?