An Outline of the Current Indian Market with Respect to the Market Capitalization

by Ashish Kumar Internet Marketing

The market capitalization of any country has direct linkage with its GDP. As the latter grows, the market capitalization also observes a rising curve. The United States is the world leader in terms of market cap, followed by Canada and the UK. Considering the scenario of Indian Markets, the market capitalization comes close to 75 per cent of its GDP. Comparing these results with that of the developed economies, the ratio goes much above 100 percent. What does this has to signify to the future of Indian companies? Clearly, the indication is towards the Indian Markets having a lot of room to catch up.

Now, at this point there is a significant point to take note of, that is, Indian Markets have almost a 50 per cent contribution in the recent increase in ‘Global market capitalization’. This contribution comes down to being almost equivalent to the total GDP of Philippines. Another fact observed is that its contribution now comprises 2.2% of the global market cap, compared to 1.8% at the year beginning.

Most emerging economies are today looking relatively weak. However, on the same line, researchers observe that the backdrop in the Indian Markets seems to be comparatively, at a much stable place. Significantly, the country is probably the only the only emerging industry at a notable high, whereas others in line are still 20 to 30 per cent lower than their respective highs.

Speaking of the Indian stocks, so far in this year, they too have outperformed most markets, both emerging and developed. One might attribute this to the investment and economy revival through the formation of new policies, with the arrival of the new government.

How does the market cap help to determine a company’s value and growth?

How do the financial investors go about spreading their investments with the companies? They work out the total size of a company’s value, and group them together based on their market capitalization. The latest annual and quarterly result reports of Indian companies, is a good source of information for the analysts to make well-informed decisions.

However, one might wonder that how do the investors get access to such information? Is there a genuine platform that connects the investor community with the corporate world? Research Bytes is that platform connecting companies with investors via an online association. RB increases transparency by bringing together analysts and the organizations under a common roof. This corporate-analyst relationship develops its roots through effective sharing and distribution of information across the platform.