With the Indian stock market showing signs of revival, the combined valuation of all the listed firms is expected to touch $1.9 trillion (about Rs 91 lakh crore) this year, surpassing the 2008 levels, a report by global consultancy Celent says.
According to the report, the market continues to hold promise as the economy is expected to grow above five per cent even in the global economic downturn.
"Equity market capitalisation is expected to exceed 2008 levels in 2009 at $1.9 trillion. However, the market is still some way off the 2007 high of $3.3 trillion," the report Indian Exchange-Traded Securities: Poised for Further Growth said.
The economy is likely to recover quickly from the global downturn and is expected to register 5-6 per cent GDP growth in this financial year and markets are reflecting that.
"The Indian markets are becoming multidimensional. As opposed to being just an equity market growth story, we also have the development of the derivative and the debt markets," Celent analyst and author of the report Anshuman Jaswal said.
FII investments in the Indian stocks, which had been affected by the recent crisis, saw positive monthly investment in April and May for the first time in more than a year.
"There are signs that these investors (FIIs) are rediscovering their faith in Indian equity markets," it added.
Image: The Bombay Stock Exchange
