Indian stock market becomes 7th largest globally: All you need to know

Indian stock market has achieved the latest milestone. India’s domestoc and equity market has surpassed Germany to become world’s seventh largest stock market.

It should be noted that Germany is Europe’s biggest share market.

According to Bloomberg data, Indian stock market, for the first time in seven years, has surpassed European’s largest economy.

The achievement came after India’s positive returns as firms depend upon domestic demand.

Meanwhile, Indian companies have raised nearly Rs 6 lakh crore from equity and debt instruments in 2018, but volatile market conditions brought down the kitty by 30 per cent and political uncertainties ahead of the 2019 general elections may again cast a shadow on fund-raising activities in first half of the new year.

Experts, however, are hopeful the fund-raising will gather steam in second half of 2019 with a pick-up in the overall investment climate.

The data shows the debt market remains the most preferred route for raising funds to support business needs of the corporate world.

Out of the cumulative Rs 5.9 lakh crore garnered so far this year from capital markets, a large chunk or Rs 5.1 lakh crore has been mopped up from the debt market and the remaining amount of about Rs 78,500 came from equity markets, figures compiled by data analytics major Prime Database showed.

In 2017, firms had raised Rs 8.6 lakh crore, including nearly Rs 7 lakh crore through debt markets and Rs 1.6 lakh crore from equities.

In equity market, funds mostly came from initial public offers (IPOs) and issuance of shares to institutional investors.

The final figures may go up to end the year at around Rs 6 lakh crore for debt and equities, experts said.

The funds have been raised mainly for business expansion plans, loan repayments and to support working capital, while a large amount raised from IPOs also went to the promoters, private equity firms and other existing shareholders for part or full sale of their investments.