India’s Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have created $1 Trillion of wealth in only six months. These indices have stood their ground against the pullout by foreign institutional investors (FIIs) ahead of the Lok Sabha election on June 4. They went from $4 trillion in November 2023 to $5 trillion this week, this has been quite an achievement.
Determination of Market Professionals
The extent of wealth that has been created in this bull run has been unprecedented in the Indian market history. Still, this growth is driven by DIIs, retail investors, and HNIs while FIIs pulled out about ₹28k crore from the market this month.
The market professionals determined that if the market remains like the past 10 to 20 years and with India projected to be the third largest economy by 2027 then the collective market capitalization of BSE and NSE could reach $10 trillion by 2030.
Scale Begets Inflows
Market expert Ajay Bagga adds that scale leads to higher inflows, which in turn generate a larger scale, thus forming a positive feedback loop of market returns and investment. The positive economic ratios accompanied by high FDI and FPI inflows contribute towards this growth.
Sectoral Momentum
With core Indian sectors such as financials and information technology (IT) picking up, the overall market cap is expected to grow at a faster rate. Also, the listing of many more companies that are unlisted will improve the size of the market capitalization. Now, there are over 130 unicorns in India, but many more could go public in the future.
Market Capitalization Milestones
| Month and Year | Amount in USD Trillion |
| May 2007 | USD 1 trillion |
| July 2017 | USD 2 trillion |
| May 2021 | USD 3 trillion |
| November 2023 | USD 4 trillion |
| May 2024 | USD 5 trillion |
| By 2030 | USD 10 trillion (expected) |
Conclusion
Currently, the Indian stock market stands as the fifth largest market in the world with a market capitalization of $5 trillion. The increase from $4 trillion to $5 trillion in such a short time especially while FIIs were pulling out money has surely boosted the confidence of the retail investors.
Amid the growth path of India, the Nifty index may reach 24,500-25,000 and the Sensex may touch 80,000-81,000 levels in FY26. Indian stock markets are on an upward trend, and it would not be wrong to predict that by 2030, there will be $10 trillion in the market reflecting the strengths of the Indian economy and investors.
Image Source: Business Insider
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