India’s mcap at $10 trn by 2030

New Delhi: India’s market capitalization (mcap) is currently the 5thlargest globally ($4.5 trn), but its weight in global indices is still low at 1.6 per cent (10th rank), foreign brokerage, Jefferies said in a report. This should change as market free float rises and some weight anomalies get sorted out. Assuming market returns in line with the last 15-20 year history and new listings, India will become nearly a $10 trillion market by 2030 -- impossible for large global investors to ignore, the report said.

With a consistent history of 10-12 per cent USD CAGR over the last 10 & 20 years, India is now the 5thlargest equity market & market capitalisation will likely touch $10 trillon by 2030. Continued reforms should maintain India’s ‘fastest growing large economy’ status. Strong trend in domestic flows have reduced market volatility and decadal low foreign ownership offers valuation cushion. RoE-focused corporate sector with 167 companies more than $5 billion market cap leave ample choices to investors, Jefferies said.