India's market capitalisation drops below $4 trillion for first time in 14 months

Driven by falling stock market and weakening rupee, India’s market capitalisation has dropped below $4 trillion for the first time in over 14 months.

According to a report India’s total market cap now stands at $3.99 trillion—its lowest since December 4, 2023—down from a peak of $5.14 trillion in mid-December, marking a staggering $1 trillion erosion.

Indian rupee weakened nearly 1.5% against US dollar year to date, second worst currency in Asia after Indonesian Rupiah.

India has recorded the steepest market capitalisation decline globally in 2025, plunging by 18.33%. Zimbabwe follows with an 18.3% decline, while Iceland ranks third with an 18% drop, the report said.

Indian stock market has been declining for seventh straight session. As of February 14, the combined market valuation of all listed companies on the BSE stood at ₹398.65 trillion, the lowest since June 2024.

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

The sharp correction in market was triggered by a 2.6% decline in benchmark indices Sensex and Nifty so far this year, while broader indices such as BSE MidCap and SmallCap have dropped over 12% and 15%, respectively.

Indian equity indices added more losses in the mid-market session as market participants reduced their positions. Meanwhile, the broader markets were facing the heat of selling; the BSE mid-cap index dropped by 2.42%, and the small-cap index was down 2.84%.

Traders were cautious after US President Donald Trump proposed a plan to impose tariffs on trading partners amid PM Narendra Modi's official visit to the US.

All the sectoral indices on the BSE were trading in red led by Healthcare, Industrials, Power, Telecom and Utilities.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight. Some support also came in as Malaysia's economy expanded more than previously estimated in the fourth quarter on household spending and investment. Gross domestic product expanded 5.0% year-on-year in the fourth quarter.