MUMBAI: Thanks to the meteoric rise of the rupee in the last two months, the combined wealth of the Indian investors is a trillion dollar now. In Monday's intra-day trade as the rupee hit a new nine-year high against the US dollar, at 40.50, and a strong rally took BSE's market capitalisation to over the Rs 40.50 lakh crore mark, India joined an elite club of countries that boast of $1-trillion market capitalisation. With the country's GDP too at over $1 trillion now, India is among the 10 countries in the world which has a trillion-dollar GDP and market capitalisation at the same time. Both these milestones were achieved due to the appreciation of the rupee, which was hovering around 44.50 during the beginning of 2007. At that exchange rate, India's GDP as well as BSE's market cap would now be about $921 billion. In the last year, investor wealth in rupee terms has jumped 37% to Rs 40.40 lakh crore; in dollar terms, it has shot up 56% to $1 trillion. During the same period, Sensex has gained 36% to its current close at 14,398. While market players said this milestone for India is more psychological in nature, they believe that joining this elite club would also attract greater international attention. ‘‘India is already the fourth largest market in Asia (behind Tokyo, Hong Kong and Shanghai) and the country's GDP growth rate has been second fastest in the world. And now achieving this important milestone would definitely be important when it comes to FII investment,'' said Amitabh Chakraborty, president-equities, Religare Securities.
Source:29 May, 2007 -TIMES NEWS NETWORK
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