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Chart: Market Cap To GDP is 63%

With popular request (from Kaushik) I have updated the Market Cap to GDP chart for India.

Market Cap is the total NSE Market Cap at the end of the month, and GDP is known quarterly, so I put it in at the last month of the quarter. At this time, we only know about GDP till Q3 2011-12 (Dec 2011), and the budget assumed about 89 trillion (1 trillion = 1 lakh crore) of 2011-12 GDP so I’ve taken that figure tentatively from March 2012. (Actual GDP figures come out only on 31 May)

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We’re not quite at the lows of 2008 and not even as low as we had hit in December (59%). We are though at levels last seen in the troughs of 2008-09 and prior to that, in 2005 when it was an upward trend.

Total market cap as of May 18 was Rs. 56.49 trillion.

Yes, I know, not comparable, but it’s just a context.