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NSE listed companies` m-cap cross $5 trillion milestone

Published on May 27, 2024 15:09

The Indian stock market reached a new landmark on May 23rd, with the combined market capitalization of companies listed on the National Stock Exchange (NSE) surpassing **$5 Trillion (Rs 416.57 trillion)**. This achievement coincides with the Nifty 50 index hitting an all-time high. Additionally, the Nifty 500 index also reached a record high, indicating broad-based growth extending beyond just large-cap stocks.

It is noteworthy that the pace of market capitalisation growth has accelerated significantly in recent years. Reaching $2 trillion from July 2017 took 46 months, while the jump from $3 trillion (May 2021) to $4 trillion (December 2023) occurred in 30 months. The latest $1 trillion addition required only 6 months, demonstrating the market`s rapid expansion.

The growth is not limited to top companies. The Nifty 100 index constituents now represent 61% of the total market capitalization, compared to 74.9% in April 2014, indicating diversification across sectors. This growth is further supported by increased resource mobilization by small and medium enterprises (SMEs) through primary market offerings.

Secondary market liquidity has also witnessed a significant rise. The equity segment`s daily average turnover has increased over 4.5 times, from Rs 17,818 crore in FY15 to Rs 81,721 crores in FY24. This growth can be attributed to increased participation from both domestic and foreign investors. Over the past decade, domestic mutual fund assets under management have increased by 506%, while Foreign Portfolio Investor (FPI) AUM has grown by 345%.

This milestone signifies the success of India`s vision for a technology-driven and knowledge-based economy. The recent launch of derivatives on the Nifty Next 50 index further expands market accessibility for investors.

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