Thanks to local equity indices, which have added 6.9% so far, India has left behind Canada and Germany to have the 7th biggest stock market in the world. With the BSE market cap now at $2.7 trillion. India’s stock market cap is more than Canada, Germany and Saudi Arabia according to The Economic Times. Additionally, India has been the second-best performing stock market among the top 15 countries and has surpassed the market caps of the likes of Switzerland, Australia, Sweden and Taiwan according to The Bloomberg Report.  

The largest economy in Europe, Germany, has a market value of $2.53 trillion and is trailing behind Canada and India. In the biggest seven Global Market Caps, only two other European countries, France and the UK exist. France has a market value of $2.8 trillion and the UK has a market value of $3.3 trillion.  

India has overtaken Canada for the first time after almost 11th months. If we talk about the top of the list, the United States of America sits comfortably on the throne with a whopping $44.3 trillion market cap. Following the USA is India’s neighbour China with a market cap of $11.1 trillion and Hong Kong with a market cap of $7.7 trillion.  

According to the business daily The Economic Times, the Indian market cap has strengthened due to a rise in foreign portfolio investors having pumped approximately $4.05 billion in the Indian equity indices since the beginning of 2021. This is the second biggest inflow of foreign investment after Brazil which also saw investments of $4.5 billion. Additionally, as the US dollar has weakened for a few months, the emerging markets have been able to perform better than ever before. 

Indian equity benchmarks Nifty and Sensex have been on a steady rally and extended the rally to the seventh day to reach new highs. According to financial analysts, this rally is on the back of strong corporate earnings. On Tuesday, Reliance Industries, ICICI Bank, HDFC Bank, Asian Paints, Infosys all saw gains which led to Sensex rising as much as 405 points. The second day of the week saw Sensex going into the records book for hitting the new high of 51,753.42 points. Meanwhile, Nifty 50, which also works in tandem with Sensex, touched its all-time record high of 15,237.90. 

These benchmark indices have more than doubled compared to March 2020 low. March 2020 saw Sensex and Nifty plummet down due to the COVID-19 outbreak and the nation-wide lockdown. But since then, the recovery has been agile as the market did not leave much space for investors to buy and cling to the idea of dip. 

According to reports, thanks to Budget 2021, not only the Indian economy sees a chance of revival but investors also have been on a rising tide. In terms of the market cap in the BSE-listed companies, the wealth of investors rose by more than Rs. 11 lakh crore since January 29, 2021.