While the Indian stock market was in a correction phase between October 2024 and February 2025, once it started recovering in March, it has added a whopping $1 trillion in market capitalization since then. The current market capitalization of the listed companies in the country aggregates to $5.33 trillion.
Highest Growth amongst Top 10 Equity Markets
This $1 trillion increase accounts for a 21% surge in India’s market cap, which is the highest amongst the top ten equity markets across the globe. While the Indian market is currently in the fifth position after the US, China, Japan, and Hong Kong, in growth of m-cap, it surpassed these nations as well.
Here are the top ten equity markets and market cap gains generated by them since March 2025 –
| Countries | Gains in Market Cap (%) | Market Capitalization ($ Trillion) |
| India | 21.1 | 5.3 |
| Germany | 13.8 | 3 |
| Canada | 10.8 | 3.6 |
| Hong Kong | 9 | 6.3 |
| United Kingdom | 7.5 | 3.5 |
| Japan | 7.3 | 6.9 |
| Taiwan | 5.2 | 2.6 |
| France | 3.8 | 3.4 |
| US | 2.5 | 52.9 |
| China | 1.9 | 10.5 |
Performance of Benchmark Indices
As the Indian mcap grew, the benchmark indices are also witnessing an upward rally. The BSE Sensex and Nifty 50 witnessed around 12.5% and 13.5%, respectively, rally upward since March 2025. The broader market indices, such as BSE MidCap and BSE SmallCap, jumped around 20.7% and 26% respectively during the period.
However, this rally again pushed the valuations of Indian equities further, and analysts are thus downgrading their earnings estimates for the Indian equities again. Nifty 50 EPS estimates for the financial year 2025 witnessed a drop of 0.3% during April 2025. The estimates for FY26 and FY27 have been downgraded significantly by 1.1% and 1%, respectively.
Increased Valuations Across Sectors
The sectors that have higher valuations include –
- Consumption
- Information Technology
- Investments,
These sectors’ valuations even surpassed pre-pandemic levels, but the earnings are not at par with these valuations. With these stretched valuations, it is becoming difficult for investors to earn the desired returns.
Source: MoneyControl
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