India total market cap to India GDP is 77%
Indian stock market is Fair Valued
Total Market Cap / GDP Valuation
< 50% ----------------Significantly Undervalued
50% 75%----------Modestly Undervalued
75% 90% ---------Fair Valued
90% 115% -------- Modestly Overvalued
> 115%----------------Significantly Overvalued
Hi Karthik ji...
How did you arrive at the figure of 77% for India's MarketCap-to-GDP ratio? Is there a reliable source or have you calculated it based on certain assumptions?
As per
World Bank's statistics India's GDP as of 2013 was US$ 1.877 trillion... Converting it into Rupees at an Exchange Rate of Rs62/$ (exchange rate as on Dec 2013) means a GDP of around Rs 116 trillion as on 2013...
Taking growth of 5.6% p.a. for 14 months (Jan 2014 to Feb 2015), we get close to Rs 123 trillion as on today..
Total market capitalization of companies listed on BSE as on today is Rs 105 trillion... It's available on BSE's homepage under Market Statistics table...
As per my calculations, the figure comes to 105/123=85%...
Obviously, there are lots of unlisted companies, partnerships, proprietorships etc. which are not contributing towards Market Capitilization... (There are some fantastic companies out there which are unlisted)...
Would love to hear about your calculations/assumptions or some other source on which you have relied... Thanks for bringing this up