BUSINESS

Indian stock market close to exiting elite trillion-dollar club

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Star Live 24, Star Live 24
Sunday, August 04, 2013
Published On: 18:17:21 PM

Currently at USD 1.004 trillion, Indian market is managing to stick to its trillion-dollar tag by a wafer-thin margin of 0.4 per cent and may lose this status by any further fall of this small magnitude in rupee or stock valuations.

According to the data available with the stock exchanges, the total value of all listed companies in the country has retained the trillion-dollar level by a margin of less than one per cent for many days now.

However, a gap of 0.04 per cent is the smallest in the recent past. Amid weak market trends, Indian market's value fell to Rs 61,36,641.52 crore at the end of last trading session on August 2, while rupee also fell to 61.10 per US dollar -- giving the stock market a dollar-valuation of USD 1.004 trillion.

Rather than the fall in share values, the rupee weakness has been the greater force behind the dollar-valuation plunge in the recent months.

Since the beginning of the current fiscal in April 2013, the rupee valuation of Indian stock market has fallen by only about 4 per cent (from Rs 63.88 lakh crore to Rs 61.37 crore), but its dollar valuation has plunged by about 17 per cent (from USD 1,209 billion to USD 1,004 billion).

Rupee has depreciated by about 12 per cent in this period.

Currently, 14 stock markets across the world enjoy a trillion-dollar valuation, led by the US (an estimated USD 20 trillion), while other members of this elite club include the UK, Japan, China, Canada, Hong Kong, Germany, France, Switzerland, Australia, South Korea, Nordic region, Brazil and India.

While markets like Russia, Spain and South Africa have moved out of this club after enjoying a trillion-dollar status in the past, at least four of them -- India, Brazil, South Korea and Nordic region markets -- are maintaining this level with small margins.

India had first entered the trillion-dollar club in June 2007, but moved out in September 2008, amid a global slowdown. It again moved back into this elite league by May 2009 and has mostly remained there since then, except for some brief periods.

Courtesy : Indian Express

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