India’s stock market now 7th biggest in the world as BSE m-cap surges to $2.7 trillion, could take over France soon

In a huge achievement, Indian stock market became the 7th largest in the world when its market cap crossed Rs 2 lakh crore during the intraday trade session.

Domestic equity markets began the day’s trade at fresh all-time highs. Sensex reached 51,326 for the first time ever while Nifty 50 was trading above 15,000.

To boost the pandemic-hit economy, the government of India is committed to higher capital expenditure not just in the coming fiscal year but over the next three years, principal economic advisor Sanjeev Sanyal said. He added that a sharp hike in capex in the recently announced Union Budget reflects the government’s economic strategy of rebuilding battered demand while ensuring that the supply side is expanded enough to move in tandem.

The government has budgeted capital expenditure at Rs 5.45 lakh crore for FY22, which is 26.2% higher than the revised estimates of this fiscal year.

India’s stock market is now bigger than Canada, Germany and Saudi Arabia, the Economic Times mentioned in a report. Worth mentioning here is that India’s stock market is the second-best performer among the top 15 countries in 2021 and soon it may overtake France to become the sixth biggest in the world. Total market capitalisation of France now stands at $2.86 trillion.

Almost after 11 months, India’s stock market edged past Canada, which is now the 8th biggest on the basis of market capitalisation. Europe’s largest economy Germany has a market value of $2.53 trillion. Only two European countries — France and the United Kingdom — are among the top seven markets, the business daily mentioned.

Based on the latest IMF projections, India’s growth will rebound sharply to 11.5% in FY22 and 6.8% in FY23.