India has vaulted past Canada to occupy the eighth position on the market-capitalisation leader-board globally on the back of the sterling performance of its equity markets this year. The 49% increase in market capitalisation so far this year has taken India’s market capitalisation to $2.28 trillion, against the $2.21 trillion of Canada, whose valuation grew 12.4%, Bloomberg data show.
India posted the biggest gain in market capitalisation among the Top 10 underpinned by three factors: The benchmark Sensex rose 24% in local currency terms, the rupee appreciated 12% against the dollar, bumping up gains in dollar terms, and local companies raised cash through initial share sales, expanding the investment universe locally.
This year, 82 Indian companies raised over Rs.71,687 crore ($11.2 billion) in IPOs, adding about $160 billion to the market float. Funds raised through the IPO route were the highest ever in a calendar year.
To be sure, despite handsome gains this year, India’s share in the total world capitalisation is still 14% lower than the 2010 peak. It now accounts for 2.87% of the world’s market capitalisation, compared with the 10-year average of 2.46%.