Monday, October 31, 2022

Numbers in Perspective - I: Capital Markets


The stock market in USA tanked a few days ago after Elon Musk finally decided to take over Twitter. 

While it is the dharma of markets to swing and sway wildly to various sentiments, one data-point stood out - the loss of market-cap suffered by seven top companies of USA was bigger than the entire capitalisation of the Indian market!


Only a few months ago the newspaper headlines had announced that India's equity market had broken into the Top Five Club in terms of capitalisation for the first time. At  $3.21 trillion, India was now UK ($3.19 trillion), Saudi Arabia ($3.18 trillion), and Canada ($3.18 trillion). 

All is is small change compared to the total market-cap of USA which is over $47 trillion...We have a long, long way to go!

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REFERENCES & LINKS

* (12 March 2022) - India breaks into world's top five club in terms of market capitalisation - https://www.business-standard.com/article/markets/india-breaks-into-world-s-top-five-club-in-terms-of-market-capitalisation-122031200004_1.html

* Visualising market capitalisation - https://howmuch.net/articles/all-stocks-capitalization-around-the-world

* Pearls of wisdom on investing in India - mostly from Mohandas Pai at a @TheRepublic event - https://youtu.be/Vtitg-o-8FI 





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