M-Cap fall in 2025: Due to the weakness of the rupee and the fall in the stock market, the market cap of listed companies in the country fell below 4 trillion dollars i.e. 4 lakh crore dollars. This has happened for the first time in 14 months. So far in this year 2025, India's market cap has decreased the most in the world, which is the fifth largest stock market in the world. Its market cap has fallen by 18.33 percent this year. After this, Zimbabwe is in second place, whose market cap has fallen by 18.3 percent so far this year and Iceland is in third place, whose market cap has decreased by 18 percent.
In comparison, the market cap of the world's largest stock market, America, has increased by 3 percent this year, while China and Japan have increased by 2.2-2.2 percent. Talking about other important markets, Hong Kong's market cap has increased by 1.2 percent this year, Canada's by 7.2 percent, UK's by 7.1 percent and France's by 9.9 percent.
Weakness of rupee and fall in stock market reduced capital
The Indian rupee has weakened by about 1.5 percent against the US dollar so far this year, making it the second-worst currency in Asia after the Indonesian rupiah. Apart from this, domestic equity benchmark index Sensex and Nifty 50 have fallen 2.6 percent this year, while BSE Midcap has fallen 12 percent and Smallcap has fallen by about 15 percent. Due to this, India's market cap has fallen to $ 3.99 trillion, which is the lowest since December 4, 2023 and is well below the record high of $ 5.14 trillion in mid-December.
Due to this there was pressure on the Indian market
Due to slow growth of companies, weak income and high valuation, foreign investors withdrew more than $10 billion this year, which put pressure on the market. Apart from this, the tariff war started by US President Donald Trump has also put pressure. The comments of ICICI Prudential AMC CEO S. Naren and valuation expert Ashwath Damodaran also put pressure on the market. At the IFA Galaxy Conference, Ashwath raised questions on the market's volatility and long-term stability and cautioned investors against SIPs in mid and small cap funds. Ashwath Damodaran also said that despite the country's rapid economic growth, Indian shares remain the most expensive worldwide.
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