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Indian stock market hits historic $4 trillion mcap milestone

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Indian stock market hits historic $4 trillion mcap milestone

The Indian stock market has achieved a milestone by surpassing the $4 trillion valuation mark. This is the time that all listed companies, on the BSE, the top stock exchange have collectively reached this level.

During the morning session, the market capitalization of BSE-listed businesses exceeded ₹3,33,26,881.49 crore, which roughly translates to $4 trillion at an exchange rate of 83.31. This growth can be attributed to sentiments in the equity market.

It’s worth noting that China, Japan, Hong Kong, and the US are also among the markets with a capitalization exceeding $4 trillion.

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To put this achievement into perspective back, in May 2007 these companies collective market capitalization stood at $1 trillion. By July 2017 it had surpassed $2 trillion. Further climbed to $3 trillion in May 2021.

According to data from Bloomberg, the market capitalization of India has grown by 15 percent in this calendar year whereas China’s market capitalization has declined.

Since April 1, India’s mcap has increased by 27%. Meanwhile, the mcap of the top 100 companies has grown 17 percent to ₹195 trillion, while those outside the top 100 have seen their market value surge 46 percent to ₹133 trillion.

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“India’s correlation of returns with global equities is declining and is lower than it has ever been. However, in terms of capitalization, India is an important stock market in a global context and cannot entirely leave from global equities market trends,” says Ridham Desai, MD & Head of Research at Morgan Stanley India.

“Softer global markets may limit absolute gains, while a strong global bull market may coincide with relative underperformance for low-beta markets such as India,” he added.

According to analysts, India’s achievement to turn into a $4 trillion market capitalization milestone will enhance its reputation in Asia and Emerging Markets (EM). Analysts believe that India’s strong earnings, stability, and domestic investments make it an exceptional market.

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In weeks several foreign brokerages such as Goldman Sachs, JPMorgan, Morgan Stanley, and CLSA have suggested increasing investment in India within the EM and Asia Pacific (APAC) regions despite high valuations compared to its counterparts.

Also Read: Elon Musk shares screenshot of a poem written by GrokAI, admires its intelligence

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

New Delhi, Feb 26 (IANS) ICICI Securities has warned of a potential derailment of growth momentum in unsecured personal loans due to recent regulatory actions. The report highlights concerns over accelerated growth in unsecured loans and the impact on NBFCs.

The regulatory measures by the RBI include an increase in risk weights on unsecured consumer credit and banks’ funding to NBFCs. This is aimed at prompting lenders to reassess their growth strategies in light of the heightened credit growth in unsecured personal loans since the onset of the Covid pandemic.

The surge in credit demand for personal and consumer loans was driven by factors such as disruption in cashflow for small SMEs, temporary unemployment during the Covid phase, and a focus on lifestyle upliftment. Additionally, tech upgrades during Covid simplified credit delivery and expanded the reach for NBFCs.

Many NBFCs have adapted to the demand by revamping their processes and partnering with fintechs to leverage their balance sheet. Consequently, credit growth in personal and consumer loans has exceeded 100 per cent CAGR for most NBFCs, far surpassing the sub-20 per cent blended growth between FY21 and December 2023.

The cumulative AUM of NBFCs analyzed in the report amounts to Rs 10 trillion, with unsecured loans exhibiting even faster growth rates. Some players have reported unsecured loan CAGRs exceeding 100 per cent between FY21 and December 2023. This trend underscores the significant impact of unsecured personal loans on the overall credit landscape for NBFCs.

–IANS

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India seeks greater say for developing countries at WTO meet

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India seeks greater say for developing countries at WTO meet

India advocates for flexibility in existing WTO agreements for developing countries at 13th Ministerial Conference

Abu Dhabi, Feb 26 (IANS) India emphasized at the 13th Ministerial Conference of the WTO in Abu Dhabi that developing countries need flexibility in current agreements to address constraints in industrialization. Commerce Secretary Sunil Barthwal led the Indian delegation, highlighting the need for appropriate policy space to tackle longstanding issues.

India raised concerns about combining development issues with new topics like “Trade and Industrial Policy” and objected to integrating Gender and MSMEs discussions within WTO, stating they are already addressed in other international forums.

In discussions on sustainable development and policy space for industrialization, India stressed the importance of maintaining focus in the multilateral trading system and avoiding mixing non-trade issues with the WTO agenda. The country also promoted a sustainable lifestyle approach, including the LiFE movement for environmental conservation.

Furthermore, India expressed apprehension about the rise of trade protectionist measures under the guise of environmental protection, calling for a balanced approach. The nation urged for a sustainable way of living based on traditions and conservation values to combat climate change effectively.

Journalist: IANS
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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

New Delhi, Feb 26 (IANS) Markets regulator SEBI has issued a warning to investors regarding fraudulent schemes claiming affiliation with SEBI-registered Foreign Portfolio Investors (FPIs) and offering stock market access through FPIs or FIIs.

SEBI has been flooded with complaints about trading platforms falsely associating themselves with FPIs and FIIs and luring individuals through online trading courses and mentorship programs. These fraudsters manipulate social media platforms like WhatsApp and Telegram to deceive victims into downloading applications for trading privileges without the need for official accounts.

The regulatory body highlighted that the FPI investment route is not available to resident Indians, with few exceptions as per the SEBI (FPI) Regulations, 2019. SEBI emphasized that there is no provision for an “institutional account” in trading, and investors must have a trading and Demat account with a SEBI-registered broker/trading member and DP for direct access to the equities market.

SEBI clarified that no relaxations have been granted to FPIs regarding securities market investments by Indian investors. The market regulator urges investors to exercise caution and avoid falling prey to fraudulent schemes propagated through social media and online channels claiming unauthorized stock market access through FPIs or FIIs.

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