India ranks 4th in global market cap despite low per capita income, says NSE CEO Ashishkumar Chauhan

Indian equities have managed to become the fourth-largest market capitalisation globally at $5.6 trillion even after having a low per capita income of around $3000, highlighted the CEO of the National Stock Exchange (NSE) of India Ashishkumar Chauhan while speaking at the Moneycontrol's Markets ki Dhadkan event.

Chauhan noted that usually, countries that have low per capita incomes face many challenges hindering their goal of establishing thriving markets, as citizens with low incomes tend to save less and have lesser trust in the financial systems.

Speaking at the event, he discussed the significant changes in the Indian markets that have taken place over the last ten years, especially after the policy shifts in 2014.

The evolution of the country’s equity markets can be measured just by observing its market capitalisation, which jumped to $4.68 trillion from $2.8 trillion five years ago, the Moneycontrol report said. India also ranks fourth globally in terms of market cap, growing from seventh place in just five years, it added. Furthermore, cash turnover has also surged to ₹1.22 lakh crore from ₹36,000 crore and F&O increased from ₹9.5 lakh crore to ₹400 lakh crore.

Retail participation has been on the rise, jumping to 17.5 crores from just 3.59 crores five years ago, the report said. Additionally, trading volumes have increased significantly beyond the top five cities.

The report noted Chauhan pointing out a crucial factor that is driving this influx of domestic investors into Indian markets: trust in Indian entrepreneurs. Investors now believe that these entrepreneurs are committed to maximising the value of their investments, marking a shift in sentiment that has drawn retail investors into the market, it added.

“This is a market of the people, by the people, for the people,” Chauhan emphasised during the Moneycontrol event, underscoring the important trust relationship between entrepreneurs and investors. He further warned against actions that might undermine this trust, comparing the market ecosystem to a shared pond—polluting it would harm everyone involved, the report said.