India’s share in global market capitalization has reached its lowest level in 29 months so far in 2025. Currently India’s share is only 3.47 percent. Earlier, this much share was recorded in July 2023. At the end of July last year, it was at a record high of 4.64 percent, but now it is continuously declining. Especially in recent months it has become more intense. It was 4.18 percent at the end of December 2024 whereas it was 4.5 percent at the end of September 2024 when Sensex and Nifty were at their peak.
According to the report of Moneycontrol, the total market cap of all the companies listed on BSE reached about $ 5.19 trillion as of December 17. This is slightly 0.5 percent above the $5.18 trillion at the end of December 2024 but about 9 percent below the record high of $5.66 trillion in September 2024. Meaning the value of the Indian stock market is decreasing in dollars.
Indian rupee slipped
The main reason for this is the continuous withdrawal of money by foreign investors. So far this year 2025, foreign investors have sold equity worth more than Rs 2.56 lakh crore from the secondary market. The reasons being cited are expensive valuations, weak earnings, weakening of the rupee and difficulties in the global market. The value of rupee is also continuously falling, it has crossed 91 rupees against one dollar and may soon reach near 92. There is also concern about no progress on the trade deal. This is spoiling the sentiment of investors.
This year both Sensex and Nifty have given returns of around 9 percent but the situation is different in the broader market. The BSE Midcap index is up just 0.5 percent while the Smallcap index is down 9 percent. That means there has been more loss in the shares of small companies.
America’s share also decreased
On the other hand, the equity market cap of the entire world is increasing and has reached a record high of $ 147.58 trillion. This is 19.4 percent more than Rs 123.61 trillion in December 2024. The world’s money is increasing but India’s share is decreasing because our market is performing less in dollar terms.
Talking about big markets, America’s share has decreased slightly this year to 48 percent which was a record 50.8 percent in the beginning of February and was around 50 percent in the beginning of the year. China has increased its share to 8.8 percent which was 8.1 percent at the beginning of the year. Japan’s share remains stable at 5.2 percent.
Hong Kong’s share among other countries increased to 4.85 percent which was earlier 4.51 percent. Canada’s 2.79 percent from 2.5 percent earlier. Britain’s 2.55 percent, up from 2.47 percent earlier. France’s 2.44 percent from earlier 2.37 percent. Taiwan’s 2.1 percent increased from 2.01 percent earlier and Germany’s 2.08 percent from 1.94 percent earlier. Meaning most of the big markets are increasing or keeping their share stable but India’s is decreasing.
Seeing all this, Indian investors are worried because on one hand foreign money is flowing out, rupee is weakening and India’s weightage in the global market is decreasing.
It is hoped that the situation will improve soon, earnings will improve and foreign investors will come back. At present, it is time to be cautious in the market, especially for those who are investing for a long time, this is a shock, but it can also become an opportunity if purchase is made at the right time.
