The National Stock Exchange (NSE) of India celebrated a significant milestone on May 23, 2024, as the market capitalization of its listed companies exceeded USD 5 trillion (Rs 416.57 trillion). This achievement coincided with the Nifty 50 Index reaching an all-time high of 22,993.60 and the Nifty 500 Index also setting a record at 21,505.25, reflecting widespread growth beyond just the large-cap stocks.
The journey to this milestone has been remarkable. Indian companies’ market capitalization grew from USD 2 trillion in July 2017 to USD 3 trillion by May 2021, a period of 46 months. The next trillion was added by December 2023, taking 30 months, and the latest trillion took only about six months. The top five companies driving this growth are Reliance Industries Limited, TATA Consultancy Services Limited, HDFC Bank Limited, ICICI Bank Limited, and Bharti Airtel Limited.Over the past decade, the Nifty 50 Index has delivered a compound annual growth rate (CAGR) of 13.4%. During the same period, domestic mutual fund assets surged by 506%, and foreign portfolio investors’ assets increased by 345%. The share of Nifty 100 constituents in total market capitalization has decreased from 74.9% in April 2014 to 61%, indicating growth across various stock segments.
The equity segment’s daily average turnover in the capital market segment has also seen substantial growth, rising from Rs 17,818 crores in FY15 to Rs 81,721 crores in FY24. This increase in liquidity and the launch of derivatives on indices like the Nifty Next 50 and Nifty Midcap Select highlight the NSE’s commitment to providing a robust market infrastructure.Shri Sriram Krishnan, Chief Business Development Officer of NSE, attributed this success to the supportive regulatory frameworks of the Government of India, SEBI, and RBI. He emphasized that this rapid growth in market capitalization underscores investors’ faith in the Indian economy and reiterated NSE’s dedication to facilitating capital formation and providing top-notch market infrastructure.
