Adani Group's Stock Bloodbath Pushes India Out Of World¡¯s Top Five Stock Markets List

The bloodbath in Adani Group shares over the past week has cost India its spot among the world¡¯s five biggest equity markets, as its market capitalization dropped to $3.2 trillion this week. Previously, in seventh place, France's $3.2 trillion market cap had made it jump over India and the UK to the fifth position in the list.

India Slips To Sixth In World's Biggest Stock Market List

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According to Bloomberg data, India's drop to sixth place puts the UK at the bottom, with a gap of slightly more than $100 billion, representing the combined value of companies with a primary listing in the respective country. With Adani Group's downfall continuing, India may slip further down the ranking if the drag persists.

The list of the top 10 biggest equity markets at present is as follows:

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1.US ($43.25 Trillion)

2.China ($11.03 Trillion)

3.Japan ($5.75 Trillion)

4.Hong Kong ($5.73 Trillion)

5.France ($3.2 Trillion)

6.India ($3.19 Trillion)

7.UK ($3.09 Trillion)

8.Canada ($2.93 Trillion)

9.Saudi Arabia ($2.71 Trillion)

10.Germany ($2.38 Trillion)

India's stock market has suffered an erosion of $137 billion since the beginning of the year, led by the bloodbath in the shares of Adani Group companies. According to an ET report, the drop in Adani Group stocks this year is responsible for nearly half of the fall in India's market capitalization.

Lowest Market Cap In 6 Months

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India's market capitalization of $3.2 trillion is the lowest since August 2022 India's market capitalization of $3.2 trillion is the lowest since August 2022, while the global equity market capitalization has risen by $664 billion to $104 trillion in the first month of 2023, according to the data from Bloomberg.

As a result, India's share in global equities has fallen by 32 basis points to 3% on a year-to-date basis. India's equity outperformance over emerging market (EM) peers has also reduced to 11% from 25% at the end of December 2022. The P/E premium of Indian equities over their EM peers has dropped to 65%, compared with 100% in early November.

India Entered The Top 5 List In 2022

India's ascension to the top five list was fueled by a strong performance in 2022. During the year, India¡¯s contribution to the world M-cap (currently at $104 trillion) also topped the 4 percent mark for the first time. The share has now slipped to 3.06 percent, according to data provided by Bloomberg.

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