The market-cap-to-GDP ratio has declined swiftly – from 79 percent as of FY19 to 56 percent (FY20 GDP) – much below the long-term average of 75 percent
Current market cap to GDP ratio stood at 54%, last seen only in the 2008 crisis. Usually, through the cycles it oscillates between 50% to 150%.
The bottom could be some time away because we have fallen just 30 percent in 2 months while history suggests that bottom formation has taken anywhere between 10-27 months.
The US dominates the global ranking, with $27 trillion mcap, followed by China, Japan, Hong Kong, UK, France and India.
Even as some analysts have come out and said -- in light of recent global macro turbulence -- that equity markets are poised for a 2008-like crash, one of the country's leading fund managers is not being so pessimistic.