Indian Stock Market Beats UK, Canada; Becomes World’s 6th Strongest Market!

India is now the sixth most valued stock market in the world. 

Overtaking UK Economy

For the first time ever, it has outgrown the UK in terms of market capitalisation to become the sixth biggest stock market.

India has a market cap of $3.16674 trillion as against $3.1102 trillion for the UK.

The overall world market cap stands at $106.54 trillion and India accounts for 2.97% of it.

The Top Markets

The US is the biggest contributor to the world market cap with 43.2%.

The US is at the top with the world’s biggest market valued at $47.32 trillion.

It is followed by China ($11.52 trillion), Japan ($6 trillion), Hong Kong ($5.55 trillion), Saudi Arabia ($3.25 trillion) and India at number 6 with $3.16 trillion.

Trailing behind India are Canada ($3.12 tln), UK ($3.11 tln), France ($2.71 tln), Germany ($2.18 tln) and Taiwan ($2.06 tln).

Saudi Arabia The Only Winner

Saudi Arabia had a fruitful month, having added around $442 billion in MCap.

It is currently the world’s second-largest exporter of crude oil and its stock markets saw a jump after crude oil surged to historic levels.

Apart from Saudi Arabia, all top global stock markets suffered losses amidst the ongoing war in Ukraine.

Losses Due To War

Since the beginning of December, the US has lost around $6.6 trillion, China $1.48 trillion, Japan $622 billion and Hong Kong $524.31 billion.

India lost nearly $357.05 billion in market cap when the Russian Invasion began late last month.

Morgan Stanley said that Indian stocks held up very well despite the rise in crude.

Strength Of Indian Market

It cited a combination of factors such as change in macro funding mix to FDI, falling oil intensity in GDP, high real relative policy rates and a strong domestic bid on stocks.

What also helped India climb the market cap ladder was its lesser losses compared to other economies along with record levels of fund raising through IPOs in 2021.

Over the last 1 year, 117 companies raised $16.2 billion through public listing. 

FIIs

Equity markets, especially in India, are getting affected by the war which has resulted in sustained selling by foreign institutional investors (FII).

Co-founder and joint managing director of Motilal Oswal Financial Services Raamdeo Agrawal said that the main obstacle for Indian stock markets is the continuous FII selling, which on a daily basis is in the region of $1 billion for the past few days.

He added that the FIIs have left India for now but their return to Indian equities will be a “very painful entry”.