ENA Sectors 2024-12-24 17:03:37 <p><span style="font-size:14px"><strong>New Delhi, Dec 24 (KNN)</strong> A comprehensive report by the State Bank of India (SBI) reveals a dramatic transformation in India's capital markets, with corporate fund mobilisation surging from Rs 12,068 crore in 2014 to Rs 1.21 lakh crore in FY25 (up to October). </span></p> <p><span style="font-size:14px">This tenfold increase over the past decade signifies growing investor confidence and strengthening economic fundamentals.</span></p> <p><span style="font-size:14px">The report highlights the significant correlation between market performance and economic growth, noting that a 1 percent increase in stock market capitalisation contributes to a 0.06 percent rise in GDP growth rate. </span></p> <p><span style="font-size:14px">This relationship underscores the market's role as an indicator of economic robustness, though impulse response analysis suggests the impact of market capitalisation shocks on the real economy diminishes after three periods.</span></p> <p><span style="font-size:14px">Household participation in equity markets has shown remarkable growth, with savings in shares and debentures rising from 0.2 percent of GDP in FY14 to approximately 1 percent in FY24. </span></p> <p><span style="font-size:14px">The share of these investments in overall household financial savings has increased from 1 percent to 5 percent during the same period, indicating growing public participation in funding economic growth.</span></p> <p><span style="font-size:14px">The National Stock Exchange (NSE) has witnessed exceptional growth, with market capitalisation expanding more than sixfold to Rs 441 lakh crore in FY25 compared to FY14. </span></p> <p><span style="font-size:14px">This growth is reflected in the average trade size in the equity cash segment, which has increased from Rs 19,460 in FY14 to Rs 30,742 in FY25 to date.</span></p> <p><span style="font-size:14px">These developments collectively underscore the evolving role of Indian capital markets in financing the country's growth trajectory, marked by increased investor participation and substantial household contributions to the financial ecosystem.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40379 https://knnindia.co.in/news/newsdetails/sectors/tenfold-growth-in-corporate-fund-mobilisation-reflecting-strong-investor-confidence-sbi-report 2024-12-24 17:03:37 knnindia.co.in