India's market cap to GDP nears 100%

Indian stocks are nearing the red zone as the country’s market capitalisation is now almost equal to its gross domestic product (GDP). With the benchmark indices recording new highs, India’s market capitalisation has swelled to Rs 150.7 lakh crore, 95 per cent of GDP (on a trailing four-quarter basis). The market cap-to-GDP ratio was just 72 per cent a year ago.

The surge of 23 percentage points is due to exuberance in the equity market despite economic growth slowing. 

The Indian market cap has risen by Rs 44.44 lakh crore, or 42 per cent, in the past one year. Besides the sharp