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The market capitalization of private listed companies surged 6.4 times, reaching Rs 384 trillion, while Public Sector Undertakings (PSUs) grew five times, to Rs 72 trillion, over the last ten years, says a report by Motilal Oswal.
The report also noted that India has seen impressive growth in market capitalization over the past decade, emerging as one of the world's fastest-growing equity markets. This remarkable growth has been driven by a combination of larger corporate expansion and increased participation from smaller companies and emerging industries. It said "India has remained one of the fastest-growing equity markets during the past decade". The report also highlighted that the expansion in India's market has been supported by a growing number of new issuances across various sectors, reflecting a broad-based and resilient growth pattern. Smaller companies and new sectors have made substantial contributions to the country's economic development, helping to create a more balanced and diverse market landscape. It added "Indian equities will deliver a healthy long-term compounding given the strength of corporate India's balance sheet and prospects of secular profitable growth". Major Indian companies like Reliance Industries, HDFC Bank, and TCS have even been included in MSCI World Indices, with expectations that more Indian companies will join global indices in the future. The unique blend of size, growth, and diversity found in India's market is relatively rare globally and is likely to reinforce India's status as a significant market for years to come. Corporate India's strong balance sheets and potential for long-term, profitable growth indicate that Indian equities are positioned to deliver solid returns over the long term. Additionally, the report highlighted that the number of listed new-age, e-commerce, and platform companies has grown from just five in 2014 to 29 in 2024. These companies' market capitalization has soared from approximately Rs 178 billion in March 2014 to around Rs 4.8 trillion in November 2024, highlighting a thriving ecosystem for startups in India. The combination of strong corporate performance, emerging industries, and the sustained rise of new-age companies positions India's equity market for further growth and establishes it as an attractive long-term investment destination. (ANI)
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