India’s market capitalisation can grow from $4.8 trillion now to $50 trillion in the next 20 years, National Stock Exchange (NSE) CEO Ashish Chauhan has predicted. If India must reach a market cap of $50 trillion in next 20 years, it will come on the back of tech-driven startups that will lead wealth creation, National Stock Exchange (NSE) CEO Ashish Chauhan said.
He was speaking at ANMI’s 13th International Convention 2024 in New Delhi on Saturday.
The US has Warren Buffett and India has Nifty for wealth creation, the NSE MD and CEO said while recommending investing in Nifty for future growth of our country and wealth creation for investors.
While highlighting the role of stock brokers as a catalyst to this growth, he said almost 9 crores depositaries with unique PAN numbers are registered with NSE which accounts for 20% of India’s households. He said we must set a target to make it 100%.
ANMI President Dr Vijay Mehta pointed out that just last month, over 5.4 million new investors joined the market, and as of February 9th, we had nearly 161 million registered investors.
Sebi’s whole-time member Kamlesh Varshney said the capital market needs to grow at more than 12% to meet the target of Viksit Bharat. “Emphasis on Reforms, Innovation including use of technology and Investor’s trust are critical items to achieve targeted capital market growth,” he said.
The combined market value of all listed stocks on BSE has grown to $4.8 trillion from $4 trillion in less than 3 months.
Having already left Hong Kong behind, India is now the fourth largest stock market in the world behind the mother market of the USA, followed by China and Japan.
India hit $1 trillion for the first time on 28th May 2007. It took the Street another 10 years to get to the next trillion. The $2 trillion milestone came on 16th May 2017. The next one was quicker as the $3 trillion level was hit in four years on 24th May 2021.
Assuming market returns in line with the last 15-20 year history and new listings, analysts at Jefferies are expecting that India to become nearly a $10 trillion market by 2030 – impossible for large global investors to ignore.
“Over the next 4 years, India’s GDP will likely touch $5 trillion making it the 3rd largest economy by 2027, overtaking Japan and Germany, being the fastest growing large economy with the tailwinds of demographics (consistent labour supply), improving institutional strength and improvement in governance,” said Mahesh Nandurkar of Jefferies.
India’s market cap to GDP is 1.2x, which is still lower compared to major economies such as the US and Japan which are at 1.9x/1.4x, respectively.
Despite being the fourth largest hub of stocks, India’s ranking in the Bloomberg World Index is 8th with a weight of just 2% which indicates enough headroom for FIIs to start pouring in more dollars.
