After remaining in an elite group of countries with market capitalizations of above a trillion dollar for a little over four years, India lost that tag as the rupee closed at an all-time low level of 61.10 to a dollar and the stock markets fell for the eighth consecutive session. On Friday, the sensex lost 153 points to close at 19,164, and BSE’s market capitalization fell to $998 billion.
The last time India’s market cap had fallen below the 13-digit figure was in mid-July of 2009. In rupee terms, BSE’s market capitalization stood at Rs 60.98 lakh crore. One of the main reasons for this slide out of the elite league is the sharp depreciation of the rupee in recent months. From about 54.5 to a dollar at the start of the year, the Indian currency has depreciated over 13% to its current level. And since the stock market has remained almost stagnant during this period, India’s market value in dollar terms has eroded substantially, pulling it below the $1-trillion mark on Friday. India was the 11th member of this elite group led by the US with a market cap of over $20 trillion.
The last time India’s market cap had fallen below the 13-digit figure was in mid-July of 2009. In rupee terms, BSE’s market capitalization stood at Rs 60.98 lakh crore. One of the main reasons for this slide out of the elite league is the sharp depreciation of the rupee in recent months. From about 54.5 to a dollar at the start of the year, the Indian currency has depreciated over 13% to its current level. And since the stock market has remained almost stagnant during this period, India’s market value in dollar terms has eroded substantially, pulling it below the $1-trillion mark on Friday. India was the 11th member of this elite group led by the US with a market cap of over $20 trillion.
No comments:
Post a Comment