India to become 3rd largest economy by 2027, market cap to hit US$ 10 trillion by 2030: Jefferies
- IBEF
- February 23, 2024
Jefferies, a global brokerage house, anticipates India's equity market to surge, becoming the fifth-largest globally with a projected market capitalization of US$ 10 trillion by 2030. The country has demonstrated a consistent 10-12% USD Compound Annual Growth Rate over the last two decades, securing its position as the fastest-growing large economy. Jefferies attributes India's resilience to robust trends in domestic flows, reduced market volatility, and historically low foreign ownership, providing a valuation buffer. Despite impactful reforms, such as the bankruptcy law and GST implementation, India's GDP is poised to reach $5 trillion in the next four years, propelling it to become the third-largest economy by 2027. The brokerage envisions sustained growth at 6% over the next five years, positioning India as a standout performer in a global landscape experiencing declining growth rates.
With a current market cap of US$ 4.5 trillion, India stands as the fifth-largest globally, and Jefferies foresees structural domestic flows and potential unicorn listings, driving the market cap beyond US$ 10 trillion by 2030. Despite this growth, India's weight in global indices remains modest at 1.6%, a factor expected to change as market free float increases, potentially making Indian stocks more appealing to a broader range of global investors. Jefferies underscores the significance of India's higher weights in global indices, envisioning a rise in country weight that could attract diverse equity investors beyond those solely focused on emerging markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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