Market Cap: At the beginning of this bull run, the Indian stock market, as represented by NSE, was just another stock exchange in developing world. Though it was admired for its online trading platform, its gyrations hardly mattered to the world. Five years hence, NSE now ranks among the world's 10 biggest stock exchanges and India is inching closer to the status of being a global asset class. Since '03, NSE's market capitalisation has recorded a compounded annual growth rate (CAGR) of 55%.
Obviously, no global fund manager will have the courage to ignore such high returns. In contrast, developed markets have witnessed a CAGR of 10-15%. What's more, with each 10% rise in NSE's market cap, it is improving its ranking by one notch. Don't be surprised if India breaks into the top five in next 2-3 years. As the market cap rises, so does the market breadth and its ability to absorb greater amount of capital. Besides, it reduces the probability of wide fluctuations and price aberrations.
Number Of Trades: Critics may describe the rise as a fluke and temporary in nature, without realising the fact that the NSE is already the world's third busiest stock exchange in terms of the number of shares bought and sold. The bull run has been supported by an over 25% compounded growth in the number of trades. The fact that NSE can handle such a heavy load without a hitch proves the resilience of its system and raises the confidence of the global investment community in the Indian capital market. This will prove positive in attracting capital in Indian over the longer term.
Value Of Shares Traded: In October this year, shares worth $564 billion were traded on the NSE — almost two-and-a-half times more than at the beginning of '03. Though volume growth in India lags that of other emerging markets, it has now crossed a psychological barrier of half-a-trillion dollars.
Obviously, no global fund manager will have the courage to ignore such high returns. In contrast, developed markets have witnessed a CAGR of 10-15%. What's more, with each 10% rise in NSE's market cap, it is improving its ranking by one notch. Don't be surprised if India breaks into the top five in next 2-3 years. As the market cap rises, so does the market breadth and its ability to absorb greater amount of capital. Besides, it reduces the probability of wide fluctuations and price aberrations.
Number Of Trades: Critics may describe the rise as a fluke and temporary in nature, without realising the fact that the NSE is already the world's third busiest stock exchange in terms of the number of shares bought and sold. The bull run has been supported by an over 25% compounded growth in the number of trades. The fact that NSE can handle such a heavy load without a hitch proves the resilience of its system and raises the confidence of the global investment community in the Indian capital market. This will prove positive in attracting capital in Indian over the longer term.
Value Of Shares Traded: In October this year, shares worth $564 billion were traded on the NSE — almost two-and-a-half times more than at the beginning of '03. Though volume growth in India lags that of other emerging markets, it has now crossed a psychological barrier of half-a-trillion dollars.
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