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kulman
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   Topic: India enters global market-cap Top 10
Posted: 31/Aug/2007 at 9:08pm |
India enters global market-cap Top 10
The Indian capital market's record-breaking spree continues. Shortly after crossing the $1-trillion mark in total market capitalisation, it has now broken into the Top 10 list - with a total m-cap of $1.09 trillion. India is now the 10th largest equity market in the world. In the last one month, it has overtaken Russia, Australia, South Korea and Italy.
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 31/Aug/2007 at 9:47pm |
In the last one month, it has overtaken Russia, Australia, South Korea and Italy.
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Did we not ring the alarm bells in the last one month. We are presently quoting on a Market cap to GDP of about 1.1. Service economies trade at a Market cap to GDP of 2 or even in some cases 5. That would happen when there is serious PE expansion.
Valuing economies on a Market cap to GDP is the same as valuing companies on a Market cap tos ales basis except that about 25% of India (Agriculture) finds no reprsentation in the market cap whereas it is counted in the GDP!!!
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smartcat
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Posted: 31/Aug/2007 at 10:45pm |
Look at the Sensex/Nifty constituents. Isn't it a bit too early to classify India as a 'service economy'?
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basant
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Posted: 31/Aug/2007 at 12:11pm |
Software, Telecom, Reliance, Banking are secular growth stories. The proportion of cyclical is coming down earlier we had Hind Motors, Century, Bombay Dyeing but that proportion is fast changing.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Mohan
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Posted: 31/Aug/2007 at 7:38am |
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Basantji,
How would the Market Cap to GDP ratio reflect the cash component of the Indian economy ?
Edited by Mohan - 31/Aug/2007 at 7:39am
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basant
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Posted: 31/Aug/2007 at 9:47am |
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It would not reflect that but cash which is invested in fixed income would add to the GDP and the entity it is listed cash component does add to the market cap.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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tigershark
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Posted: 01/Sep/2007 at 5:25pm |
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so bottomline is 1.09 trillion a cause for worry or does anyone beleive we can double it to 2.18 trillion?
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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PKB2000
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Posted: 01/Sep/2007 at 9:14pm |
Originally posted by basant
Software, Telecom, Reliance, Banking are secular growth stories. The proportion of cyclical is coming down earlier we had Hind Motors, Century, Bombay Dyeing but that proportion is fast changing. |
Growth of Indian market and its present status will gradually attract more and more concentration for study and analysis. There is certain subtle changes in the path of progress in Indian Economy since 2003, and more and more sectors have taken path in this progress. Besides the more we find clarity of market, market has become more stronger. Of course F&O in stock market will ridicule us time to time, Mungerilals will try to change the concept but the sense of people and the young biasless research reports will cover the promising sectors considering Indian consumption and fundamentals. Gradually the science of extrapolation will win eliminating its art components or sentiments behind the stock. Even in consideration to recognisation of the areas of growth probably we can hope for greater space in political maturity amongst our political leaders in the coming days  . The sectors that are more focused since 2003 must remain focused to continue the growth story in future also at least upto 2015. Else it will be difficult to carry the growth.
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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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