India Inc's combined market capitalization has slipped below the country's GDP (gross domestic product) with the stock markets seeing yet another decline.
The market cap of the listed firms on the Bombay Stock Exchange and the National Stock Exchange on Monday declined by a whopping Rs 125,000 crore (Rs 1,250 billion) to Rs 43,75,020 crore (Rs 43,750.20 billion), thereby falling below the GDP of Rs 46,93,000 crore (Rs 46,930 billion) at current market price, as per the real economy data released by the Reserve Bank of India [Get Quote] on April 28 this year.
Market experts said with the rupee depreciating further at 43.03 a dollar coupled with the likely continuation of the bearish sentiment, the market cap is likely to slip below $ 1 trillion in the coming days..
India Inc's market cap had crossed the GDP level on May 22, 2007 and moved to Rs 74,48,000 crore (Rs 74,480 billion) on January 8, 2008, almost 1.8 times of the GDP level of Rs 41,50,000 crore (Rs 41,500 billion) at that time.
This means, the current bear phase has wiped out market cap of over Rs 30,00,000 crore (Rs 30,000 billion) in just five months.