Stellar Growth: NSE-Listed Companies’ Market Cap Soars from $4 Trillion to $5 Trillion in Just 6 Months

<ul>
  <li>The market capitalization of companies listed on the National Stock Exchange (NSE) exceeded $5 trillion on Thursday.</li>
  <li>This milestone coincided with the Nifty 50 index reaching a record high of 22,993.60.</li>
  <li>In morning deals today, Nifty crossed the 23,000 milestone, hitting a new high of 23,004.05.</li>
</ul>
<p><strong>NSE-listed companies' market cap surpasses $5 trillion, reflecting robust investor confidence and economic growth.</strong></p>
<h2><strong>NSE Market Cap Surpasses $5 Trillion</strong></h2>
<p>The National Stock Exchange (NSE) announced that the market capitalization of its listed companies has exceeded $5 trillion. This significant achievement comes as the Nifty 50 index reached a record high of 22,993.60 on Thursday. In morning deals today, the Nifty crossed the 23,000 milestone, hitting a new high of 23,004.05.</p>
<h3><strong>Rapid Growth in Market Capitalization</strong></h3>
<p>According to a press release by the NSE, it took just six months for the market cap to jump from $4 trillion to $5 trillion. The $4 trillion mark was reached in December 2023. This rapid growth underscores the strong investor confidence in the Indian economy. The NSE further noted that the market cap grew from $2 trillion in July 2017 to $3 trillion by May 2021, a span of 46 months. The subsequent increase to $4 trillion took 30 months, achieved by December 2023, and the latest leap to $5 trillion occurred in just six months.</p>
<h3><strong>Key Contributors to Market Cap Growth</strong></h3>
<p>The leading companies by market capitalization include Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, and Bharti Airtel. The Nifty 500 index also touched an all-time high of 21,505.25 on Thursday, indicating that this growth trend in the equity market is not restricted to only the top-tier companies but is reflected across a broad spectrum of stocks.</p>
<h3><strong>Performance of Nifty 50 and Mutual Funds</strong></h3>
<p>The NSE highlighted the impressive performance of the Nifty 50 index over the past decade, delivering a 13.4 percent Compound Annual Growth Rate (CAGR). In the same period, domestic mutual fund assets under management (both Equity and Debt) surged by 506 percent, growing from ₹9.45 lakh crore at the end of April 2014 to ₹57.26 lakh crore by the end of April 2024. Foreign Portfolio Investors (FPIs) also saw significant growth, with their assets under management (Equity and Debt) increasing by 345 percent, from ₹16.1 lakh crore at the end of April 2014 to ₹71.6 lakh crore by the end of April 2024.</p>
<h3><strong>Broader Market Participation</strong></h3>
<p>The growth in market capitalization extends beyond the top companies, spreading across a wide range of stocks. The Nifty100 index constituents now represent 61 percent of the total market capitalization, down from 74.9 percent in April 2014. This shift indicates broader market participation. Corporate resource mobilisation, including from Small and Medium Enterprises (SMEs) in the primary market, has been encouraging, offering a viable alternative to traditional fundraising methods.</p>
<h3><strong>Improved Liquidity in Secondary Market</strong></h3>
<p>Liquidity in the secondary market has significantly improved in the Capital Market Segment. The daily average turnover in the equity segment has increased more than 4.5 times, from ₹17,818 crores in FY15 to ₹81,721 crores in FY24. These milestones reflect the vision for the Amrit Kaal, aiming for a technology-driven, knowledge-based economy with strong public finances and a robust financial sector.</p>
<h3><strong>Conclusion</strong></h3>
<p>The NSE's achievement of surpassing a $5 trillion market capitalization is a testament to the robust growth and investor confidence in the Indian economy. This milestone, along with the impressive performance of the Nifty 50 and broader market participation, underscores the dynamic and resilient nature of India's financial markets. As the market continues to evolve, the focus remains on sustainable growth and inclusive participation, setting a strong foundation for future economic prosperity.</p>