Market cap of BSE-listed companies slips below ₹400 lakh crore for first time since June 2024

The broad-based selloff in the Indian equity market has pushed the country’s market capitalisation to its lowest level in eight months. As of Friday (February 14), the combined market valuation of all listed firms on the BSE stood at ₹398.65 lakh crore, the lowest since June 2024.

After reaching a record high of ₹478 lakh crore in September last year, the combined market valuation has dropped by nearly ₹80 lakh crore over the past four and a half months.

While the benchmark Nifty50 has declined 13% since September 30, 2024, the Midcap and Small Cap indices have been hit harder, losing 18% and 20%, respectively.

However, the weakening rupee has exacerbated the reruns in dollar terms. India's market capitalisation has shrunk by $1 trillion since December 2023, as the Indian rupee depreciated by 3.4% over the past six months.

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According to Bloomberg data, India's market capitalization currently stands at $3.99 trillion, the lowest since December 4, 2023. This marks a sharp decline from its peak of $5.18 trillion recorded in mid-July.

The Nifty50 has declined nearly 5% since January, in contrast to the 5% gains recorded by the Dow Jones. During the same period, the Shenzhen Composite has risen 4.3%, while France’s CAC 40 and Germany’s DAX have surged 12% and 15%, respectively.

Meanwhile, foreign portfolio investors (FPIs) have been offloading Indian shares since October last year, citing high valuations and slowing economic growth. However, their selling has intensified further due to rising US bond yields and a stronger US dollar.