India enters global market-cap Top 10
Printed From: The Equity Desk
Category: Economy, Markets and commodities
Forum Name: Indian Economy - Powering Ahead!
Forum Discription: Talk about various facets of the Indian economy, it could relate to GDP growth, inflation, fiscal deficit, disinvestments.Is India at the crux of becoming an economic SUPERPOWER?
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1172
Printed Date: 04/May/2025 at 8:31pm
Topic: India enters global market-cap Top 10
Posted By: kulman
Subject: India enters global market-cap Top 10
Date Posted: 31/Aug/2007 at 9:08pm
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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.
Source: http://www.dnaindia.com/report.asp?NewsID=1118824 - dnamoney
------------- Life can only be understood backwards—but it must be lived forwards |
Replies:
Posted By: basant
Date Posted: 31/Aug/2007 at 9:47pm
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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!!!
------------- '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 |
Posted By: smartcat
Date Posted: 31/Aug/2007 at 10:45pm
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Look at the Sensex/Nifty constituents. Isn't it a bit too early to classify India as a 'service economy'? |
Posted By: basant
Date Posted: 31/Aug/2007 at 12:11pm
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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. ------------- '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 |
Posted By: Mohan
Date 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 ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date 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. ------------- '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 |
Posted By: tigershark
Date 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? ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: PKB2000
Date Posted: 01/Sep/2007 at 9:14pm
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.------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: vip1
Date Posted: 02/Sep/2007 at 12:46pm
| One area of neglect is the Information Highway or Internet access which if developed Fast as Telecom can add 1 - 1.5% to GDP , according to a report and India will easily get on 10%+ or 11% + GDP levels! |
Posted By: tigershark
Date Posted: 02/Sep/2007 at 5:43pm
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LEFT RIGHT AND CENTRE remove the LEFT then why not we can even get 11% growth ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |