NSE Market Cap Jumps from $4 Trillion to $5 Trillion in 6 Months

The aggregate value of companies traded on the National Stock Exchange (NSE) surpassed $5 trillion (₹416.57 lakh crore) on Thursday, aligning with the Nifty 50 index achieving an unprecedented high of 22,993.60. During early trading on Friday, May 24, Nifty surpassed the 23,000 milestone, reaching a new zenith of 23004.05.

According to a press release by the NSE, it took NSE-listed companies just 6 months to jump from $4 trillion to $5 trillion. They hit the $4 trillion- mark in December 2023.

The NSE reported a significant growth in market capitalization. It rose from $2 trillion in July 2017 to $3 trillion by May 2021, a period of 46 months. The market cap then reached $4 trillion by December 2023, taking an additional 30 months. Most recently, the market cap crossed $5 trillion in just 6 months.

Shri Sriram Krishnan, Chief Business Development Officer, NSE said, “Increase in the latest $1 trillion in market capitalization in a very short time of around 6 months only reposes the faith of investors in the Indian economy in the years to come."

The leading companies by market capitalization are Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, and Bharti Airtel.

The Nifty 500 index reached a record high of 21,505.25 on Thursday, signifying that the positive momentum in the equity market extends beyond leading companies and encompasses a wide range of stocks, the exchange reported.

The NSE emphasized the remarkable performance of the Nifty 50 index, which has achieved a 13.4% Compound Annual Growth Rate (CAGR) over the last decade. Concurrently, domestic mutual fund assets under management, encompassing both equity and debt, have witnessed a substantial 506% surge from ₹9.45 lakh crore in April 2014 to ₹57.26 lakh crore in 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.

The NSE underscored that market capitalization growth encompasses not only the largest companies but also extends widely across various stocks. The Nifty100 index components currently account for 61% of the overall market capitalization, a decrease from 74.9% in April 2014. This shift signifies increased participation from a wider market segment.

The mobilisation of corporate funds, including the participation of SMEs in the primary market, has been a positive development, offering an alternative to the traditional methods of raising capital.

The secondary market has witnessed a substantial increase in liquidity within the Capital Market Segment. The daily average turnover in the equity segment has experienced a remarkable surge of over 4.5 times, rising from ₹17,818 crores in FY15 to an impressive ₹81,721 crores in FY24.

These milestones reflect the vision for aiming for a technology-driven, knowledge-based economy with strong public finances and a robust financial sector.