$10-trn mcap likely by 2030
However, India’s weight in global indices is still low at 1.6% (10th rank); RoE-focused corporate sector with 167 cos over $5-bn market cap leaves ample choices to investors: Jefferies
New Delhi: India’s market capitalization (mcap) is currently the 5th largest globally ($4.5 trn), but its weight in global indices is still low at 1.6 per cent (10th rank), foreign brokerage, Jefferies said in a report.
This should change as market free float rises and some weight anomalies get sorted out. Assuming market returns in line with the last 15-20 year history and new listings, India will become nearly a $10 trillion market by 2030 -- impossible for large global investors to ignore, the report said.
With a consistent history of 10-12 per cent USD CAGR over the last 10 & 20 years, India is now the 5th largest equity market & market capitalisation will likely touch $10 trillon by 2030. Continued reforms should maintain India’s ‘fastest growing large economy’ status. Strong trend in domestic flows have reduced market volatility and decadal low foreign ownership offers valuation cushion.
