Key information about India Market Capitalization: % of GDP
- India Market Capitalization accounted for 103.4 % of its Nominal GDP in Dec 2022, compared with a percentage of 112.4 % in the previous year
- India Market Capitalization: % Nominal GDP is updated yearly, available from Dec 1993 to Dec 2022
- The data reached an all-time high of 146.4 % in Dec 2007 and a record low of 23.0 % in Dec 2001
Original and Modified Historical Ratio of Total Market Cap over GDP (%)
The current ratio of total market cap over GDP for India is 86.86%. The recent 10 year high was 119.85%; the recent 10 low was 58.11%. If we assume that the ratio will reverse to the recent 10 years mean of 88.58% over the next 8 years, the contribution to expected annual return is %.Based on the modified version, the current TMC / (GDP + Total Assets of Central Bank) Ratio for India is 77.64%. The recent 10 year high was 101.92%; the recent 10 low was 51.59%. If we assume that the ratio will reverse to the recent 10 years mean of 79.06% over the next 8 years, the contribution to expected annual return is %.
This is the detailed historical chart of the original TMC / GDP ratio and modified TMC / (GDP + Total Assets of Central Bank) ratio.
Based on these historical valuations, we have divided market valuation into five zones:
| Ratio = Total Market Cap / GDP | Valuation |
|---|---|
| Ratio ≤ 62% | Significantly Undervalued |
| 62% < Ratio ≤ 80% | Modestly Undervalued |
| 80% < Ratio ≤ 97% | Fair Valued |
| 97% < Ratio ≤ 115% | Modestly Overvalued |
| Ratio > 115% | Significantly Overvalued |
| Where are we today (2023-01-30)? | Ratio = 86.86%, Fair valued |
Based on these modified historical valuations, we have divided market valuation into five zones:
| Ratio = Total Market Cap / (GDP + Total Assets of Central Bank) | Valuation |
|---|---|
| Ratio ≤ 55% | Significantly Undervalued |
| 55% < Ratio ≤ 71% | Modestly Undervalued |
| 71% < Ratio ≤ 87% | Fair Valued |
| 87% < Ratio ≤ 103% | Modestly Overvalued |
| Ratio > 103% | Significantly Overvalued |
| Where are we today (2023-01-30)? | Ratio = 77.64%, Fair valued |
The Nifty is trading at a 12-month forward RoE (Return on Equity) of 15.6 per cent, above its long-term average, Motilal Oswal said in its report.
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