India has slipped to seventh place in the ranking of countries by market capitalization (m-cap), and Adani Group’s falling share price continues to hurt the country’s standing.
Britain overtook India to place her in sixth place. The latter entered the top five for the first time, surpassing its former colonial ruler just nine months earlier.
In less than two months, the domestic market has fallen two ranks below her. On 31 January, France pushed India out of her fifth spot. So far this year, India’s M-cap has fallen by $231 billion (6.93%) to $3.1 trillion. The Adani Group accounted for more than 60% of his losses, with the group’s m-cap eroding around $145 billion year-to-date (YTD).
India’s contribution to his M-Cap in the world is also below 3% after he surpassed 4% in October 2022.
While the Indian market is by far the worst performing market in the top 10, other markets continue to outperform from last year.
High valuations in India and concerns about the governance of Adani Group are weighing on investor sentiment, analysts said.