/financial-express-hindi/media/media_files/mCJohJjRhkZB0v8hcRUn.jpg?w=1200&resize=1200,675&ssl=1 "Market cap of Indian companies listed in NSE crosses 5 trillion dollars, Indian market at new high")
NSE Market Cap: The market cap of NSE listed companies crosses 5 trillion dollars:The Indian stock market has achieved a new milestone with the rise on Thursday. The market capitalization of Indian listed companies on the National Stock Exchange crossed the 5 trillion US dollar mark today i.e. on 23 May 2024. On Thursday itself, Nifty 50 index also touched its highest level of 22,993.60. The Nifty 500 index also touched an all-time high of 21,505.25 before closing at 21,489.55 on Thursday, which shows that growth in the equity market is not limited to big stocks only.
Market cap increased by 1 trillion in 6 months
The market capitalization of Indian listed companies traveled from US$2 trillion to US$3 trillion in about 46 months between July 2017 and May 2021. But after this, the distance from 3 trillion US dollars to 4 trillion US dollars was achieved in December 2023 i.e. in about 30 months. And now the journey from $4 billion to $5 billion has been completed in just 6 months. According to market capitalization, the top 5 companies of the market are Reliance Industries Limited, Tata Consultancy Services Limited, HDFC Bank Limited, ICICI Bank Limited and Bharti Airtel Limited.
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CAGR of Nifty 50 was 13.4% in 10 years
The Nifty 50 index has a return (CAGR) of 13.4 per cent in the last 10 years. During the same period, the assets under management (equity and debt) of domestic mutual funds grew 506 per cent from Rs 9.45 trillion at the end of April 2014 to Rs 57.26 trillion at the end of April 2024. The assets (equity and debt) under management of foreign portfolio investors (FPIs) grew 345 per cent from Rs 16.1 trillion at the end of April 2014 to Rs 71.6 trillion at the end of April 2024.
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Growth in market cap is not limited to top companies
The increase in market cap is not limited to top companies but has been seen across all stocks. The constituents of the Nifty 100 index now account for 61 per cent of the market capitalisation, while as of April 2014, they were equivalent to 74.9 per cent of the total market capitalisation. Resource raising by corporates including small and medium enterprises in the primary market has been encouraging. Liquidity in the secondary market has also improved significantly in the capital market segment. The average daily turnover of the equity segment has increased 4.5 times from Rs 17,818 crore in FY15 to Rs 81,721 crore in FY24.
