Economic Survey 2024-25 Highlights Market's Performance, Surge in IPO Listings

Market today, Economic Survey Updates: Cheer seems to have taken across the D-street after the Economic Survey called the Indian stock market among the best-performing markets in the world. Benchmark indices— Sensex and Nifty— surged by over 1% on Friday, ahead of the Union Budget.

The survey also pointed out that the IPO market has a lot to do with this surge. "Equity-based financing has catapulted to popularity, with IPO listings growing six times between FY13 and FY24 and India being ranked first globally in terms of the number of IPO listings in FY24," the survey stated.

Between April and December 2024, the count of IPOs surged by 32.1 per cent to 259 from 196 in the corresponding period of the previous year. The total amount raised almost tripled from Rs 53,023 crore to Rs 1,53,987 crore during the same period.

The survey also cited a report by E&Y Global, pointing out that "Indian stock exchanges provide conducive market conditions for foreign conglomerates to list their local subsidiaries, thereby offering a good opportunity for unlocking value." India’s share in global IPO listings rose to 30% in 2024, up from 17% recorded in 2023.

Market Performance among the best in world

While markets have remained under pressure during the past few months, on a long-term basis India’s stock market performance has been robust.

In line with the performance of Indian markets, India’s weight in the MSCI-EM index reached a new high of 20 per cent in July 2024 before settling down at 19.4 per cent at the end of December 2024. This is only the third highest after China and Taiwan, the Economic Survey read.

The Nifty50 index has posted a compounded annual growth rate (CAGR) of 8.8% over the past decade (since March 2014), when adjusted for USD. China's Shanghai Composite Index has a CAGR of 3.2%.

However, this performance lags behind some US indices, such as that of NASDAQ Composite (15.3%) and the US Dow Jones (9.2%) as of December 2024.