India's Global M-Cap Share Hits 29-Month Low Amid Foreign Outflows, Rupee Weakness

• India's share in global market capitalization (m-cap) has dropped to a 29-month low of 3.47% in 2025, down from a high of 4.64% last July.
• The decline is attributed to sustained foreign investor outflows of over INR 2.56 trillion, stretched valuations, subdued earnings, and global headwinds.
• A weakening rupee, crossing INR 91 per dollar, and lack of progress on a trade deal have further impacted sentiment.
• While India's benchmark indices Sensex and Nifty gained 9%, broader markets like BSE SmallCap declined 9%.
• Globally, equity m-cap reached an all-time high of $147.58 trillion, with China's share increasing and the US's declining.

Why It Matters: India's global m-cap share is at a 29-month low due to foreign outflows and domestic economic concerns.