Global m-cap crosses $100 trillion mark for first time pushed by US and China, India claims 2.4%

Global market capitalisation or the total value of all listed stocks in the world climbed up beyond the $100 trillion mark for the first time last week chiefly pushed by the tech-driven market rally in the US and China. On December 5, the world’s market capitalisation was pegged at $100.5 trillion, or about Rs 7,400 lakh crore, Bloomberg data cited.

A large part of this jump led by tech stocks in the US is known as FAANGM (Facebook, Apple, Amazon, Netflix, Google and Microsoft), market players said. At the close of trading last week, the US had an m-cap of $41.6 trillion, while China had $10.7 trillion. India, with a market cap of about Rs 180 lakh crore or $2.4 trillion, has been placed at 10th. The US and China have added to market share in 2020, while all the other eight in the top 10 m-cap league have reduced their shares.

The US now has a share of over 41.6% to be placed at head of the global market cap table, while China with 10.7% from 8.4% at the start, is the second-most valued. Likewise, India’s share currently is 2.4%, a slight drop from 2.5% at the start of the year. On the other hand, Japan — the country with the third-highest market cap, swelled from $6.3 trillion to nearly $6.8 trillion, but its share in global m-cap tumbled down from 7.2% to just 6.7%.

Canada is the only country that stepped up its position in the global league table to seven from eight, replacing Saudi Arabia, mainly due to Saudi Aramco’s m-cap which is almost at the same level it was at the start of the year, while a rally in tech stocks lifted Canada’s market cap.

V-shaped recovery of almost 63% from the March low of $61.6 trillion has pulled up the global market cap to meet the milestone. On March 24, the global market cap had dropped down to $61.6 trillion — a level that was not seen since 2016, according to Bloomberg data. It has rallied up 15.5% in the year so far from $87 trillion at the close of 2019.

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