India’s share in global market capitalization eases from all-time high
Live MintThe last few months of 2024 saw some turbulence in global equity markets due to various factors, leading to a correction in stocks. India’s share in global market capitalization has dipped to 4.2% in December from its August peak of 4.6%, as global equity markets faced turbulence, showed an analysis by Motilal Oswal Financial Services Ltd. The good part is that despite the moderation, the Indian market was among the top 10 contributors to global market capitalization in December. While sustained inflows by domestic institutional investors have helped to keep stock market sentiment upbeat, a reversal in fund outflows by foreign portfolio investors who were net sellers of Indian stocks in 2024, will be a crucial monitorable. Globally, geopolitical uncertainties, the pace and quantum of interest rate hikes by the trend-setter US Federal Reserve and potential changes in tariffs by US President Donald Trump could keep volatility in emerging market currencies and equities high.