Apart from lesser erosion compared to other nations, record fund raising through initial public offerings (IPOs) in calendar year 2021 also aided India to climb the market cap ladder. Over the last twelve months, 117 companies raised $16.2 billion from the equity market through IPO rout.
Despite the turbulence in equity markets across the globe, India on Thursday achieved yet another milestone in market capitalisation. The market capitalisation of the country has surpassed that of United Kingdom for the first time to become the sixth largest in the world.
Saudi Arabia, which entered into the top league, post Aramco listing in 2019, is ranked fifth with a market cap of $3.25 trillion. The listing of LIC shares, which has been described as nation’s Aramco moment, could lift the market cap rank by one notch if the listing gets sailed through as per market expectations.
The Street pegs the valuation of insurance giant at about Rs 15 lakh crore post listing. The biggest-ever offering is also the fourth-biggest IPO of any insurer globally.
Barring Saudi Arabia, all the top stock markets in the world have lost value in 2022 as Russian onslaught on Ukraine triggered selloff across the risker assets. Saudi Arabia, which has been retaining its lead, spurred by oil price surge could add $687.65 billion since December 1. The Brent crude gained 70% during the same period.
Among the top 10 nations by market cap, Canada was less affected with a market cap loss of $67.9 billion in 2022. That was followed by India, with a loss of $296.5 billion. United Kingdom, which was ranked above India till now has lost almost double of what India has lost since January in market cap. The market capitalisation United Kingdom plummeted as much as $562.2 billion to $3.11 trillion, Bloomberg data showed.
Apart from lesser erosion compared to other nations, record fund raising through initial public offerings (IPOs) in calendar year 2021 also aided India to climb the market cap ladder. Over the last twelve months, 117 companies raised $16.2 billion from the equity market through IPO rout.
While Saudi Arabia, India, Canada and United Kingdom are valued more than $3 trillion in market valuation, Japan and Hong Kong boast of third and fourth rank with $5.8 trillion and $5.5 trillion, respectively. India now accounts for 2.97% of the world market cap, which stands at $ 106.54 trillion. The US — largest country by market cap — contributes 43.2% to the world market cap.