Indian households earned $1T from stock market in 10 years
What's the story
Indian households have made a mind-boggling $1 trillion from the stock market over the last decade, by putting only 3% of their balance sheet in equities, a report by Morgan Stanley has found. The global investment banking firm estimates that these households have contributed to wealth amounting to $8.5 trillion in this period, with nearly 11% of it coming from equities.
Founders' contribution
Equity investments by founders boost total wealth
When you include the equity investments made by founders, the total wealth generated by Indian households jumps to a whopping $9.7 trillion. This also increases the equity share to 20%, or about $2 trillion. Morgan Stanley's Ridham Desai wrote in a report that "Indian households are still under-invested in equities." He then hinted that this number could even double in the coming years.
Market growth
India's market capitalization sees significant growth
Over the last decade, the market capitalization of all listed companies in India has surged significantly, from $1.2 trillion in March 2014 to a whopping $5.4 trillion. This growth makes India the fifth-largest market in the world and boosts its share in global market capitalization to 4.3% in November 2024, up from just 1.6% in 2013.
Gold's role
Gold contributes significantly to wealth creation
Gold has also contributed significantly to wealth creation for Indian households, contributing to 22% of the wealth added in the last decade. Morgan Stanley noted that "household wealth has gained significantly from an outsized position in gold." The report further emphasized that gold and equities have always been among the best-performing asset classes in India over time.