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In A First, Total Value Of India’s GDP Less Than Market Cap Of Companies Listed On Stock Market

by GoNews Desk 1 week ago Views 899
In A First, Total Value Of India’s GDP Less Than M
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For the first time, due to the economic downturn, the market capitalisation of the Bombay Stock Exchange-listed firms has exceeded the total value of the country's GDP.

According to the latest data, the market cap of companies listed on the Bombay Stock Exchange hit an all-time high of Rs 161 lakh crore.

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The market cap is the total money invested in the stock market of all the listed companies, whereas the GDP is the price of all the goods and services produced in a given period in the country.

Interestingly, among this, Mukesh Ambani's company Reliance Corporation alone accounts for the maximum market cap.

Reliance Industries recently became the first Indian company to hit $200 billion market cap, with a market valuation of over Rs 14.72 lakh crore, followed by TCS with a market cap of Rs 8.75 trillion ($119 billion)

The biggest reason for this is the capital investment in Reliance Jio, due to which Reliance made a lot of profit during the lockdown itself.

If we compare this with the country's GDP, then the total value of the country's GDP in the financial year 2019-20 was about Rs 145.6 lakh crore. But now RBI Governor Shaktikanta Das has warned that the country's GDP may shrink to 9.6 in FY 2020-21. If this happens, then this figure will reduce to Rs 131.8 lakh crore.

Simply put, more money is invested in the stock market than the money combined among the 130-crore population of the country. But the problem is that the money put in the stock market cannot be withdrawn easily. For this, you need a DBA account and a person to buy your share, then you can withdraw the money.

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