India’s Market Capitalization: 2022
India’s equity market has entered into the world’s top 5 clubs in terms of market capitalisation for the very 1st time. The country’s aggregate market cap encapsulates at $3.21 trillion, which is slightly higher than that of the UK ($3.19 trillion), next, Saudi Arabia ($3.18 trillion), and then, Canada’s ($3.18 trillion). The total world market stands at USD 109.22 trillion.
Talking specifically about India’s rank for some time, then at present India is standing at 5th, after the U.S., Japan, China, and Hong Kong. At the beginning of the year 2022, India was ranked 7th. Later on, India climbed 2 positions despite a 7.4% drop in its capitalization. Now, India’s aggregate market capitalization is $3.21 trillion.
Let me also mention that Russia’s war or we can say attack on Ukraine has upended the ranking with European countries seeing the max erosion in market cap. Germany, once among the top 5 markets, has now gone down to 10th.
However, Saudi Arabia has climbed 3 steps from 10th to 7th. The country, essentially, its biggest company Aramco, stands to get from the surge in oil prices this year. Further, shares of the state-owned oil firm are up 15% year to date, valuing the firm at approx. $2.4 trillion, behind Apple, the world’s valuable company, with a market cap of $2.6 trillion.
Now, let me tell you about Market Capitalization and how it is necessary!
Market cap or we can say, market capitalization refers to the aggregate value of all a firm’s or company’s shares of stock. It is estimated by multiplying the cost of a stock by its total amount of outstanding shares. For instance, a firm with 20 million shares dealing at $50 a share would have a cap of $1 billion.
Further, we can say that Market Capitalization is very important as it permits investors to get the relative size of 1 company versus any another. Market cap estimates what a firm is worth on the open market, as well as the market’s point of view of its future prospects due to it reflects what investors are wishing to pay for its stock.
So, this is all about the Market capitalization of this year. What are your thoughts?
