Beyond projections: India’s Q2 economic soar & $4 trillion triumph!

The market capitalization of listed companies on the National Stock Exchange (NSE) has reached a historic milestone, surpassing the USD 4 trillion (Rs 334.72 trillion) mark for the first time. This achievement coincided with the Nifty hitting its all-time high of 20,291.55 last Friday, showcasing the broad-based success of the equity market rally.

The journey from USD 2 trillion (July 2017) to USD 3 trillion (May 2021) in market capitalization took approximately 46 months. Notably, the subsequent increase from USD 3 trillion to USD 4 trillion only took about 30 months, underscoring the accelerated growth.

While India ranks among the top five nations based on market capitalization, the market cap of NSE-listed companies to India’s GDP stands at 1.18 or 118%, which is lower compared to developed markets like the US or Japan. This milestone reinforces the robust growth and resilience of the Indian equity market.

India’s Q2 GDP performance exceeded expectations, registering a robust 7.6% growth. Surpassing the RBI’s projection of 6.5%, this positive outcome delighted investors, particularly as it outpaced China’s GDP growth of 4.9% in the same quarter.

Manufacturing Sector Surge: The manufacturing sector took center stage with an astonishing growth of 13.9%, reaching a nine-quarter high. This significant leap from 4.7% in Q1 contributed significantly to India’s overall economic success. Additionally, the mining sector witnessed a remarkable 10% growth compared to a 0.1% contraction a year ago, while the construction sector saw an impressive 13.3% yearly growth.

Q2 economic data highlights underscore India’s resilience and positive trajectory, showcasing strength across key sectors and instilling confidence in both domestic and international investors.