NSE listed companies' mcap surpasses $5 trillion

The market capitalisation of listed companies on the NSE surpassed $5 trillion (Rs 416.57 trillion) on Thursday on a day when the Nifty 50 index touched an all-time high of 22,993.60.

The Nifty 500 index also touched an all-time high of 21,505.25 on Thursday indicating that growth in the equity market is not restricted to only the large capitalised stocks, a statement by NSE said.

The journey of market capitalisation of listed companies from $2 trillion (July 2017) to $3 trillion (May 2021) took about 46 months, $3 trillion to $4 trillion (December 2023) took about 30 months and the latest $1 trillion addition took only about 6 months, the exchange said.

The top five companies by market capitalisation on the exchange are Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank and Bharti Airtel.

Growth in market capitalisation is not restricted to the top companies but is observed across stocks, it added.

The resource mobilisation by corporates, including the small and medium enterprises in the primary market, has been encouraging and provided an effective alternative mechanism in addition to the traditional methods of fundraising, the statement said.

Liquidity in the secondary market has also improved significantly in the capital market segment.

The equity segment's daily average turnover has increased by over 4.5 times from Rs 17,818 crore in FY15 to Rs 81,721 crore in FY24.

The achievement of this milestone is a testament to the vision outlined for the Amrit Kaal which includes a technology-driven and knowledge-based economy with strong public finances, and a robust financial sector, it said.

"I would like to thank the government of India, Securities Exchange of Board of India, and Reserve Bank of India for supporting the capital market ecosystem with progressive regulatory frameworks," Sriram Krishnan, chief business development officer of NSE, said.

"Increase in the latest $1 trillion in market capitalisation in a very short time of around 6 months only reposes the faith of investors in the Indian economy in the years to come.

"NSE as a market infrastructure institution will continue to thrive and provide the best-in-class market infrastructure and a robust platform for investors as well as for resource mobilisation for issuers, thereby supporting the important aspect of capital formation in the country," he said.