Strong Economic Growth: Number of Companies with Market Cap Exceeding One Lakh Crore Reaches 80
The Indian economy continues to exhibit robustness at a global level, with a steady increase in enthusiasm among retail investors and a rapid pace in the stock market’s strides. In the country, the number of companies boasting a market capitalization exceeding one lakh crore has soared to 80.
According to financial data for the concluded fiscal year 2023-24, companies with a market capitalization surpassing Rs. 1 lakh crore have surged by 67% to reach 80. In the fiscal year 2022-23, there were merely 48 such companies, and in the preceding fiscal year 2021-22, the number was also similar. This indicates that amidst this period, not a single new company managed to join the one-lakh crore club.
Fluctuations in Market Capitalization Amidst Pandemic Impact
In the fiscal year 2021-22, companies with a market capitalization exceeding one lakh crore witnessed a 33% surge compared to the preceding year, which saw an impressive increase of 89.5% in the fiscal year 2020-21. This contrasts with the period between 2018-19 and 2019-20, during which the number of such companies decreased from 29 to 19.
The COVID-19 pandemic predominantly contributed to this fluctuation, coinciding with significant downturns in the stock market during that time. As a result of the rapid fluctuations, there was a consequential impact on the market capitalization of these companies.
Due to the swift recovery observed in the stock market, there is expected to be an addition of more companies, potentially leading to ten of them crossing the one lakh crore mark in a short span of time.
Potential Growth for Ten Companies to Reach Rs. 1 Lakh Crore Market Capitalizati
These ten companies have the potential to reach a market capitalization of Rs. 1 lakh crore in the near future. Cholamandalam Investment and Finance, Havells India, Hero MotoCorp, Shree Cement, Dabur India, Bajaj Holdings and Investment, Mankind Pharma, Apollo Hospitals, Divi’s Laboratories, and NHPC currently have market capitalizations ranging between Rs. 90-97 thousand crore.
With a slight increase in their share value, they are poised to become part of the prestigious club of companies with a market capitalization of Rs. 1 lakh crore.
Surge in Investor Enthusiasm
Investor enthusiasm is on the rise, with a push towards achieving market record highs driving increased bidding for shares of small and medium-sized companies.
The lower prices of these shares have made them more accessible to general investors, leading to a surge in demand. Consequently, small and medium-sized companies are witnessing significant growth. – Gaurang Shah, Senior VP, Geojit Financial Services.
Rapid Momentum in the Stock Market
Between April 1, 2023, and March 31, the benchmark index Nifty 50 surged by 28.6%. However, during the same period, the mid-cap index increased by 60%, and the small-cap index by 63%.
As a result, 42 new companies joined the club of those with a market capitalization of Rs. 1 lakh crore. With this rapid momentum continuing to surge ahead, the number is expected to increase further.
