India’s wealth creation hits 30-year peak during 2020–25
Top 100 firms added Rs148-trn; Financials remained the largest Wealth Creating sector, followed by Industrials
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New Delhi: Wealth creation in the Indian equity market during 2020–2025 (five-year period) was the highest in the last 30 years, with the top 100 companies adding Rs 148 trillion, driven by the sharp rebound from the Covid-19 pandemic lows, a report showed on Thursday.
Meanwhile, Financials remain the largest Wealth Creating sector, followed by Industrials, Capital Markets, Technology and Utilities. PSUs extend their comeback, especially in defence, energy and utilities. BSE and Hindustan Aeronautics were among the biggest, fastest and ‘Most Consistent Wealth Creators’ during the period, Motilal Oswal Financial Services Ltd (MOFSL) said in its report. HAL was also the best all-around wealth creator.
According to the report, the world is getting wealthier and so is India, with global financial assets compounding steadily and India’s market cap compounding at 17 per cent over the last 20 years. India is now the fourth-largest equity market globally. “India is entering its most powerful compounding era. As the economy moves from $4 trillion toward $16 trillion, the combination of rising financialisation, expanding equity ownership and stronger corporate profitability is creating a multi-trillion-dollar opportunity for investors,” said Raamdeo Agrawal, Chairman, Motilal Oswal Financial Services Ltd.
