The Hindu Business Line : NSE, BSE clock highest market cap growth

The country's premier bourses, the BSE and the NSE, have clocked the highest growth in market capitalisation across major exchanges of the world, with only Brazil's BOVESPA sharing the top bracket.

BSE also maintains a clear lead over all other bourses across the world as the exchange with the largest number of listed firms.

According to the World Federation of Exchanges data, while NSE recorded a 44 per cent growth in market cap, BSE saw a 41 per cent growth for the year ended December 2005 over the previous year.

BOVESPA saw a market cap growth of 42 per cent during the period.

Comparison

In comparison, bourses in key emerging markets such as China's Shanghai Stock Exchange actually saw a fall in market cap by 6.45 per cent. The Hong Kong Exchanges and Clearing saw a 22 per cent growth while the Stock Exchange of Singapore registered an 18 per cent growth in market capitalisation during the period.

In comparison to bourses in the developed markets, NSE and BSE are way ahead in terms of market cap growth.

While tech-heavy Nasdaq's market capitalisation grew 2.8 per cent during the year 2005, LSE's market cap was up 6.6 per cent and NYSE's 4.7 per cent. Despite the fast track growth, BSE's market cap is, in absolute terms, however, much lower in comparison to the volumes traded in other major exchanges. BSE had a cumulative market cap of $550 billion in 2005.

Listed companies

In terms of number of companies listed on the bourses, though, BSE is way ahead of competition with 4,763 firms listed on it till December 2005. The Canadian TSX Group Exchange comes in the closest in terms of number of listed firms at 3,758, followed by Spain's BMEX Spanish Exchanges, NASDAQ and LSE, in that order.

BSE also saw an increase in the number of listed firms, while most of the established bourses actually witnessed a dip in number total listed firms during the last year, according to the data.

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