India crowned stock market superpower but 2 Wall Street darlings bigger than entire Dalal Street

By beating Hong Kong to take over the position of the world’s fourth-largest global hub of equities, India is now undoubtedly a stock market superpower and is only behind US, China and Japan. However, Dalal Street’s difference with Wall Street, often dubbed as the mother market for global equities, is gigantic.

At a total market capitalisation of nearly $51 trillion, the US market is so big that just two of its stocks - Apple ($3 trillion) and Microsoft ($2.95 trillion) - are enough to eclipse the size of all the 5,000-plus stocks listed in India.

Taken together, the two tech stocks are valued around $6 trillion, making the 5,000-plus stocks that together give Dalal Street $4.33 trillion valuation look like Lilliputians.


Also read: India overtakes Hong Kong as world’s fourth-largest stock market

Apple and Microsoft are also the world's two most valued companies, followed by Saudi Aramco ($2 trillion) which is listed on the Saudi Exchange.

On the world equity map, there are three other $1 trillion stocks - Alphabet ($1.8 trillion), Amazon ($1.6 billion) and Nvidia ($1.5 trillion).

Back home, the largest desi stock is Mukesh Ambani-led Reliance Industries (RIL) which is valued at around $222 billion, followed by HDFC Bank $142 billion. In the global list, RIL occupies the place of 47th most valued stock while HDFC Bank is ranked 88th.

For an Indian stock to achieve the $1 trillion mark, it can take as long as 2032 based on the assumption that the ratio of the largest stock's market capitalisation (mcap) to aggregate mcap sustaining at the long-term average of 5-6% and no re-rating in P/E ratios from current levels.

Also read: India's first $1 trillion stock is possible by 2032. Here are top 3 candidates

Calculations done by domestic broking firm ICICI Securities show that HDFC Bank is the most likely stock to achieve the goal with a hurdle rate of 25.5% against its historical profit growth trajectory of 20%. Two other candidates are RIL and Bajaj Finance.

To hit the milestone, Bajaj Finance mcap needs to grow at a CAGR of 41.4% till 2032, RIL 20.7% and HDFC Bank 25.5%. If the bar is lowered to $100 billion, India may have around 30-40 such stocks by 2032, according to estimates.

"The Indian market will see even better days ahead as foreign institutional investors (FII) continue to increase their stakes. The retail participation in the stock markets is at an all-time high, still growing, but far behind the developed world. With eight consecutive years of positive closures, it will not be a surprise if India becomes the second-largest stock market as the next two have given almost stagnant returns," said Shauryam Gupta, CEO, Rupeezy.

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