From Nifty's 8.8% CAGR of last 10 years to BSE's $5-trillion m-cap: What Economic Survey 2025 says about stock markets

From Nifty's 8.8% CAGR of last 10 years to BSE's $5-trillion m-cap: What Economic Survey 2025 says about stock markets

The Economic Survey 2025 spoke about various milestones that the Indian stock markets charted in 2024.

"On a longer-term basis, Indian markets have been among the best performing markets in the world. The compounded annualised returns of Nifty 50 for the past ten years (since March 2014) stand at 8.8% (adjusted for USD), trailing below few indices, such as the US NASDAQ composite index (15.3%) and US Dow Jones (9.2%) among a select set of significant markets as of December 2024.

"The corresponding CAGR of China's Shanghai Composite indices stands at 3.2%. The positive performance of the Indian stock was driven by strong profitability growth, rapid traction of digital financial infrastructure, expanding investor base and substantial reforms in products and processes. In line with the performance of Indian markets, India’s weight in the MSCI-EM index reached a new high of 20% in July 2024 before settling down at 19.4% at the end of December 2024. This is only the third highest after China and Taiwan," stated the Survey.

On May 23, 2024, the total market capitalisation of BSE-listed stocks closed above the $5 trillion milestone for the first time, noted the Eco Survey.

At the end of December 2024, BSE’s market capitalisation increased by 14.2% since March 2024 to reach Rs 445.2 lakh crore. BSE market capitalisation to GDP ratio stood at 136% at the end of December 2024, rising significantly over the last 10 years," said Eco Survey.

"India's share in global IPO listings surged to 30% in 2024, up from 17% in 2023, making it the leading contributor of primary resource mobilisation globally," stated the document prepared by a team led by Chief Economic Advisor V Anantha Nageswaran.

The Economic Survey also spoke about the retail investor exuberance in the Indian equity space.

"The total number of folios increased from 17.8 crore at the end of FY24 to 22.5 crore at the end of December 2024, and retail investors held mutual fund units worth Rs 18.6 lakh crore. Monthly average gross SIP flows have more than doubled in the last three years, from Rs 0.10 lakh crore in FY22 to Rs 0.23 lakh crore in FY25," stated the Economic Survey.

"The unique investor base at the National Stock Exchange (NSE) surpassed the 10-crore mark in August 2024, tripling in the last four years, and currently stands at 10.9 crore (as of December 26, 2024). The number of client codes, indicating a number of investor accounts at NSE, has risen from a little under six crore at the end of 2019 to nearly 21 crore as of December 2024," the document added.