NSE's market capitalization fell by Rs 37 lakh crore, driven by Rs 1 lakh crore in FII sell-offs, yet long-term growth remains strong.
NSE's market capitalization fell by Rs 37 lakh crore, driven by Rs 1 lakh crore in FII sell-offs, yet long-term growth remains strong.
National Stock Exchange (NSE)
DRHP filed-3.81%
Expert Analysis
NSE Market Cap Loses by Rs 37 Lakh Crore in October.
Expert Analysis:
Market Capitalization Loss: Foreign investors' selling led to a loss of over Rs 37 lakh crore in market capitalization on the National Stock Exchange (NSE) this October.
Decline in Market Valuation: The market capitalization of NSE-listed companies declined from Rs 470 lakh crore in September to around Rs 433 lakh crore by October 24. FIIs sold equities worth over Rs 1 lakh crore in October alone.
Recent Market Growth: Despite challenges, the market grew by approximately 22.5% from April to September 2024, with a compound annual growth rate (CAGR) of 20% over the past 20 years.
Market Cap-to-GDP Ratio: The market cap-to-GDP ratio reached 150% at the end of September 2024, the highest in over two decades.
Increase in Listed Companies: The number of listed companies increased from 422 in FY96 to 2,559 as of August 2024, leading to diversification and reducing Nifty 50's share market cap.
Mid and Small-Cap Outperformance: According to the NSE, "the relative outperformance of mid and small-cap companies over the last decade has also contributed in a meaningful manner."
