India's Equity Market Soars: 10-Year Growth and Emerging Opportunities

India's equity market has witnessed substantial growth over a decade, with private companies surging 6.4 times and PSUs increasing five times. Driven by corporate expansion and diverse industries, India's market landscape is thriving with new-age company growth and strong performances from major Indian corporations.

India's equity market has demonstrated phenomenal growth over the past decade, according to a report by Motilal Oswal. The market capitalization of private companies surged 6.4 times to Rs 384 trillion, while Public Sector Undertakings (PSUs) increased fivefold to Rs 72 trillion. This growth positions India among the globe's fastest-growing equity markets.

The report highlights that India's expanding market is bolstered by an increasing number of issuances across various sectors, underpinning a resilient growth trajectory. Smaller firms and emerging industries have played pivotal roles, contributing significantly to economic development and fostering a balanced and diversified market landscape.

Moreover, the report notes the promising potential for Indian equities to deliver healthy long-term returns, supported by robust corporate balance sheets and prospects for secular profitable growth. Leading Indian enterprises, including Reliance Industries, HDFC Bank, and TCS, have been incorporated into MSCI World Indices, with anticipation of more Indian firms joining global indices.

This rare blend of size, growth, and diversity seals India's stature as a major market contender. The evolving number of listed e-commerce and platform companies from five in 2014 to 29 in 2024, with market capitalization leaping from Rs 178 billion to approximately Rs 4.8 trillion, underlines a vibrant ecosystem for startups.

The synergy of strong corporate performance, emerging sectors, and the consistent rise of new-age companies enhances India's equity market, making it a compelling long-term investment prospect.

(With inputs from agencies.)