India’s share in global market capitalisation has fallen to a 29-month low, highlighting the relative underperformance of domestic equities compared with global peers, even as overall market valuations remain stable.
The combined market capitalisation of all BSE-listed companies stood at around $5.19 trillion as of December 17, marginally higher by about 0.5 percent from $5.18 trillion at the end of December 2024. Despite this increase in absolute terms, India’s proportion of global equity market value has declined due to stronger rallies in overseas markets.
Global Outperformance Weighs on India’s Relative Share
The dip in India’s global market-cap share reflects a phase where international markets, particularly in the US and select emerging economies, have delivered stronger gains amid AI-led rallies and sector-specific momentum. In contrast, Indian equities have largely moved in a consolidation phase, impacted by foreign fund outflows, currency weakness and valuation moderation.
Domestic Markets Hold Ground Amid Volatility
While India’s share of global market capitalisation has eased, domestic markets have shown resilience in absolute terms. The modest rise in total BSE market value suggests that selling pressure has been largely offset by domestic institutional flows and selective buying in large-cap stocks.
Market participants believe India’s relative position could improve once earnings growth accelerates and foreign investor sentiment stabilises.
Keywords: India global market cap share, BSE market capitalisation, Indian stock market valuation, global equity markets, India market underperformance, foreign investor outflows, Indian equities outlook
