India's share in global market cap rises to 2.60% in June

India’s share in the global market cap has increased in June this year to 2.60%, thanks to stupendous growth in the domestic market cap. Good earnings potential of Indian corporate entities amid the easing of Covid restrictions has been cited as a reason for the rise in India’s share

India’s share has increased at a time when emerging market’s share remained in the range of 23-24% in the last one year.

While the global market cap grew 44% in one year to June, India’s market cap surged 66% in the same period. It may be noted that India’s market cap growth has been growing at 14.7% for five years while the same for the global market has been only 13.25%.

In the last year, Indian stocks have returned 49% —among the highest in major markets. In fact, India with a return of 7.14%, was behind Brazil (8.60%) only in the last three months.

MSCI India, a gauge for measuring Indian equity performance, delivered 7.7% and 1.1% compared with the MSCI EM and MSCI World indices, respectively. Compared to emerging market counterparts, Indian stocks are now trading at a 55% premium.

According to Motilal Oswal, Nifty50 companies’ earnings grew 23% in the last financial year.