India's market capitalisation to GDP goes past 100% again, shows data
Interestingly, between 2008-09 and 2019-20, the ratio going past 100 per cent was a rarity
India’s market capitalisation (m-cap)-to-gross domestic product (GDP) ratio has once again gone past the 100-per- cent mark.
In June, it had slipped below 100 per cent, following a sharp drop in the benchmark indices. However, a bounce in the market pushed the gauge into expensive territory.
At the end of July, India’s m-cap-to-GDP ratio was at 102 per cent of 2022-23 GDP estimates, against its long-term average of 81 per cent.
Interestingly, between 2008-09 and 2019-20, the ratio going past 100 per cent was a rarity.
India’s peak m-cap-to-GDP ratio before the global financial crisis of 2008 was nearly 150 per cent in December 2017. When the Covid-19 pandemic first reared its head in March 2020, the ratio had fallen to 56 per cent.
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