After gaining for four consecutive months, India’s Market cap of all the companies listed on BSE fell sharply during July 2025. India is one of the top economies with one of the highest market caps and comes within the top ten markets of the world, but this month, its market capitalization declined by 3.6% to $5.2 trillion, from $5.38 trillion recorded in June 2025. This is the sharpest monthly decline in the last five months, since February 2025.
Why Market Cap been falling in July 2025?
As per analysts and experts, one of the primary reasons for India’s mcap to decline is the diversion of the capital flow towards IPOs and QIPs. In the past seven months, IPOs and QIPs came in bulk and raised over ₹1.2 lakh crore, and investors have been diverting from the secondary market to the primary market, given the fact that valuations in the primary market seem fairer compared to the secondary market.
The foreign portfolio investments (FPI) also turned negative during July, and they shifted more towards the primary market. Another factor that has been adding to the woes is the sluggish quarterly earnings.
Where Does India Stand at the Global Platform?
India’s market cap fell drastically when the global markets witnessed broad gains. During July, China topped the list of stock markets around the globe by market capitalization, with an increase of 6.7% in its mcap, followed by Hong Kong, which increased by 6%.
Even the world’s largest equity market, the US market, gained 3.5%, and Canada also gained 2.4% during July. Here is the list of the top ten markets by capitalization according to the performance during July –
| Countries | Increase in Market Capitalization (%) |
| China | 6.72 |
| Hong Kong | 5.98 |
| US | 3.47 |
| Canada | 2.42 |
| Taiwan | 2.27 |
| France | 0.19 |
| UK | 0.17 |
| Switzerland | -0.99 |
| Japan | -1.14 |
| Saudi Arabia | -1.33 |
| Germany | -1.52 |
| India | -3.56 |
Among the top ten markets by capitalization, India performed the worst during July. The market capitalizations for the countries that fell worse than India are Brazil, which dropped by 8.4%, Botswana by 5.6%, Lebanon by 4.2% and Chile dipped by 4.1%.
Overall Market Performance during July
In the past month, the Nifty 50 fell by 2.53% as of today, 30 July 2025, while the Sensex fell by 2.46%. This drop in markets is primarily driven by the profit booking across the IT and banking sectors.
Technical experts also suggest that the market entered an overbought zone during July, and thus, the fall was inevitable. It is a natural correction or pullback in the short term while the long-term prospects remain steady.
Source: MoneyControl
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