The number of Indian companies with market capitalizations above Rs 1 trillion has skyrocketed 40 times over the past 24 years. This reflects the country’s strong economic growth and market expansion, according to a report by the National Stock Exchange (NSE).
The report highlighted that the number of companies with market capitalizations above Rs 1 trillion increased significantly between FY2002 and FY24, with the share of total market capitalization of NSE list companies increasing from nearly 18% to over 60%. This growth is attributed to India’s strong economic foundation, implementation of important reforms, the liquidity of the surplus world after the 2008 financial crisis, and the steadily growing investor base.
The report further stated that market capitalizations of the top 10 companies have grown 28 times over the past 20 years. Their profits and assets have increased by an average of 15.4% and 16% each year over the past 20 years, respectively. In 2002, only one company had a market capitalization of over 1 trillion rupees.
By 2004, the number had increased to 2 and increased to 14 at FY10, with a total market capitalization of 21.2 lakh trillion dollars. The 2008 global financial crisis caused a temporary decline, but key economic reforms such as global liquidity injection, relaxation of FDI restrictions and deregulation of fuel prices, and improved political stability helped the market recover. By fiscal 2015, the number of companies with market capitalizations above Rs 1 trillion had increased to 22, with a total market capitalization of Rs 43.8 crore. This growth continued, with 30 companies reaching this milestone by 2019, bringing their total market capitalization to Rs 730,000.
However, post-pandemic policy measures, a strong economic recovery and increased domestic participation have driven a sharp rebound. As a result, the number of companies with a market capitalization of at least Rs 1 trillion rose to 81 in 2004 out of 2,439 listed companies. From a value perspective, these companies’ total market capitalization is Rs 2.34 lakh, accounting for more than 60% of the total market capitalization. This striking increase in high-market cap companies demonstrates India’s economic resilience, market depth and investor confidence. As reforms continue and the economy expands, the number of companies above the 1 trillion market capitalization is expected to grow even further, strengthening India’s position as a major player in the global market.
