India out of Trillion Dollar Market Cap Club

All thanks to the falling stock market and weakening rupee, India just slipped out of the elite league of countries with a trillion-dollar market capitalisation. As the rupee-dollar rate fell to 43.30 and BSE’s market cap fell another Rs 1.74 lakh crore to 41.58 lakh crore, in dollar terms this is equivalent to $966 billion. In January this year, BSE’s market cap had peaked at $1.9 trillion. It was in May 2007, in the middle of a bull rally and a strengthening economy, when India had become a trillion dollar market for the first time. At that time the rupee was around the 40.50 level to the dollar, the sensex hovered between the 13,000 and 14,000 mark, crude was near the $70-per-barrel level and the economy was set to cruise at about 8.5-9% rate every year.Factors which dictate the market have changed drastically since then, especially in the last six months, market players said. Bears have now taken charge of the market and pulled the sensex to below the 13,000 mark now, crude prices have more than doubled to over $140-per barrel and the rupee has depreciated to far below the 43 mark. And there are all the signs that the economy’s as well as corporate growth rates would now slow down.At present, there are about 12 countries in the trillion-dollar market cap league. The list is topped by NYSE with a market cap of over $15 trillion. Other bourses are Tokyo ($4.3 trillion), EuroNext ($3.9 trillion), London ($3.5 trillion), Nasdaq ($3 trillion), Shanghai ($2.6 trillion), Hong Kong ($2.3 trillion) and Deutsche Boerse (about $2 trillion). Bourses in Australia, Spain, Switzerland, Korea and OMX Nordic Bourses also have a trillion dollar market cap.