Mumbai: India on Tuesday slipped out of the elite global league of stock markets with a trillion-dollar valuation, as total value of all its listed companies fell to USD 989 billion amid huge selling pressure on the bourses.
At the end of today's trade, total market capitalisation of all listed companies in the country fell to Rs 60,18,503.88 crore (USD 989 billion), as the stocks witnessed a large scale sell off that dragged down the benchmark Sensex by over two percent to below 19,000-level after a gap of over five weeks.
The rupee also touched its all-time low of 61.80 against the US dollar, but recovered later to close marginally higher near 60.81 level.
Indian stock market has been holding to the trillion- dollar level by a wafer-thin margin for last few days amid continuing weakness in stocks and rupee values.
At the end of yesterday's trade, the total valuation of all listed stocks in India stood at Rs 61,55,448.63 crore (USD 1.011 trillion), while it had touched a low of USD 1.004 trillion last week. However, a sharp plunge in the stock values and early weakness in rupee pushed India out of the trillion-dollar club this morning.
While rupee managed to recoup its initial losses, the sell-off in stocks worsened as the day progressed.
With India out of this league, only 13 stock markets across the world now enjoy a trillion-dollar status, led by the US (an estimated USD 20 trillion). Others in this club are UK, Japan, China, Canada, Hong Kong, Germany, France, Switzerland, Australia, South Korea, Nordic region and Brazil.
Markets like Russia, Spain and South Africa have also moved out of this club after enjoying a trillion-dollar status in the past, while at least three others -- Brazil, South Korea and Nordic region markets -- are maintaining this level with small margins.
India had first entered the trillion-dollar club in June 2007, but moved out in September 2008, amid a global slowdown. It again got back into this elite league in May 2009 and had largely remained there since then, except for some brief periods.
Rather than the fall in share values, the rupee weakness has been the greater force behind the dollar-valuation plunge in the recent months.
Since the beginning of the current fiscal in April 2013, though the rupee valuation of Indian stock market has fallen by only about 4 percent (from Rs 63.88 lakh crore to Rs 60.90 lakh crore), but its dollar valuation has plunged by about 18 percent (from USD 1,209 billion to USD 989 billion).
Rupee has depreciated by over 12 percent during this period.