India's share in global m-cap hits 29-month low

The continued depreciation of the home currency has also weighed on sentiment, with the rupee crossing Rs 91 a dollar and seen nearing Rs 92 a dollar

India’s share in global market capitalisation has fallen to a 29-month low so far in 2025, tracking continued underperformance in the domestic equity market amid sustained foreign investor outflows.

The country’s share has declined to 3.47 percent, a level last seen in July 2023, from an all-time high of 4.64 percent recorded at the end of July last year. The decline has gathered pace over recent months. India’s share in global m-cap stood at 4.18 percent at the end of December 2024, compared with 4.5 percent at the end of September 2024, when benchmark indices were at their peak.

The combined m-cap of all BSE-listed companies was around $5.19 trillion as of December 17. This was up about 0.5 percent from $5.18 trillion at the end of December 2024 and nearly 9 percent lower than the all-time high of $5.66 trillion recorded at the end of September 2024.

Foreign investors have sold more than Rs 2.56 lakh crore worth of equities in the secondary market so far in 2025 amid stretched valuations, subdued earnings, a weakening rupee and global headwinds. The continued depreciation of the home currency has also weighed on sentiment, with the rupee crossing Rs 91 a dollar and seen nearing Rs 92 a dollar, amid concerns over the absence of progress on a trade deal.

So far, India’s benchmark Sensex and Nifty have gained 9 percent each, while the broader markets have shown divergent moves, with the BSE MidCap rising 0.5 percent and the BSE SmallCap declining 9 percent.

In contrast, global equity mcap has continued to expand and has reached an all-time high of $147.58 trillion, up 19.4 percent from $123.61 trillion at the end of December 2024.

Among major markets, the US saw its share in global mcap decline to 48 percent so far in 2025, down from an all-time high of 50.8 percent at the start of February and nearly 50 percent at the beginning of the year. In contrast, China recorded an increase in its share to 8.8 percent from 8.1 percent at the start of the year, while Japan’s share remained unchanged at 5.2 percent.

Other leading markets posted marginal increases in their global market capitalisation share. Hong Kong’s share rose to 4.85 percent from 4.51 percent, Canada’s increased to 2.79 percent from 2.5 percent, and the UK’s climbed to 2.55 percent from 2.47 percent. France saw its share rise to 2.44 percent from 2.37 percent, Taiwan’s increased to 2.1 percent from 2.01 percent, and Germany’s rose to 2.08 percent from 1.94 percent.