India’s Market Capitalization Surge


India’s equity market cap surpasses Hong Kong, securing the fourth position globally. As of January 23rd, the total valuation of Indian listed companies reaches $4.33 trillion, outpacing Hong Kong’s $4.29 trillion.

  • Top three are the US, China and Japan.


GS-03 (Economy)

Rapid Market Expansion:

  • India’s market cap doubles from $2 trillion in just four years, marking a significant and swift expansion.
  • Only the US, China, and Japan now boast larger equity markets than India.
  • Indian exchanges reached USD 4.33 trillion, versus USD 4.29 trillion for Hong Kong, on January 22nd, 2024.

Stock exchange:

  • A stock exchange functions as a systematically organized market where approved securities can be easily bought and sold.
  • Transactions within the stock exchange occur between its members or their authorized agents, and all dealings are governed by the established rules and bylaws.
  • The stock exchange plays a crucial role in providing comprehensive information to the public regarding the pricing and daily transaction volumes of securities.
  • It serves as a transparent platform that facilitates the efficient exchange of securities while ensuring regulatory compliance.

Stock Index:

  • A stock index, in essence, is a statistical measure indicating changes in the prices of stocks of companies registered in the stock market.
  • It acts as a barometer, reflecting overall market sentiment and the direction of price movements in financial, commodities, or other markets.
  • Investors often use stock market indices as a reference to discern general market patterns, aiding them in making informed decisions regarding stock investments.

Driving Forces Behind India’s Rally:

  • Favorable domestic growth dynamics and global capital inflows power India’s market rally.
  • Robust participation from Indian retail investors and steady foreign inflows contribute to the upward momentum.
  • Strong corporate earnings growth in the post-pandemic rebound further supports the market surge.

Major Stock Indices in India:

  • NIFTY 50: Diversified 50-stock index of the National Stock Exchange (NSE), representing 13 sectors.
  • BSE SENSEX: Free-float market-weighted index of 30 well-established companies listed on the Bombay Stock Exchange.
  • S&P CNX 500: India’s first broad-based stock market index, encompassing approximately 96% of total market capitalization.
  • MCX: Multi Commodity Exchange – Stock Exchange, India’s third national stock exchange, allowing trading in shares of 1,116 listed companies.
  • Other Indices: Includes NIFTY India Consumption, NSE Midcap, among others.