Mumbai: India’s share in global equity market capitalization has come down by 3 percent for the first time in two years due to a recent decline in Indian stock markets. The country’s market capitalization at the beginning of the current week was $ 3.75 trillion, which is equivalent to 2.99 percent of the global market capitalization of $ 126 trillion.
This part of India was the lowest since 19 April 2023. However, a research report states that India’s share has increased due to the last two days improvement in the stock market.
India’s stake will reach the highest level of 4.40 percent on 4 August 2024. Thus, there has been a significant decline in India’s stake from the top.
China’s stock markets are becoming active again and due to heavy selling in Indian shares by foreign investors, there has been a loss of $ 1 trillion in market capitalization.
India’s share in global market capitalization has been an average of 2.99 percent since 2018. The MSCI India Index declined by 18 percent from September last year, while the MSCI World Index has not changed broadly.
The difference between the country’s equity holdings has decreased due to frequent selling by foreign investors in Indian equity and continuing purchases by domestic institutional investors (DIIs). At the end of the December quarter, the equity holding difference between FII and DII was at the lowest level ever.
In the December quarter, the share of foreign investors in NSE-list shares declined to 12-year low to 17.23 percent, while DII’s stake increased to 16.90 percent.
Thus, there was only a difference of 0.33 percent between the holdings of the two, which was up to 10.30 percent in the 2015 March quarter. An analyst said that due to the selling of foreign investors, there has been a significant decline in Indian equity prices, which is affecting the overall market capitalization.
