India has become the twelfth country in the world to become a trillion-dollar economy, said a report from Swiss investment firm Credit Suisse.
With the Gross Domestic Product (GDP) at Rs 41 trillion and the rupee appreciating to below 41 against the US dollar, Wednesday was the first day for the Indian economy to become a trillion dollar economy, the report said.
Thje rupee today closed flat at 40.90/91 against the previous closing of 40.89/90.
The stock market capitalisation at $944 billion is still shy of the one trillion mark, it said.
The report maintained its rating of `underweight' on the country.
Going by history, stock markets in eight out of ten countries had risen in a one-year period after they first crossed the $1 trillion mark in GDP, said the report.
Capitalisation mark
The note says, 'The Bombay Stock Exchange's total capitalisation is $944 billion as of Wednesday. By including the capitalisation of Indian entities listed in London's Alternative Investment Market (AIM), the global companies acquired by the listed Indian companies in the last two months and some others that are often considered a part of the Indian universe (either because of their operations, management structure and-or because they are covered by Indian analysts), we reach a total of $992 billion.'
The BSE benchmark index closed 11.11 points or 0.08 per cent higher at 14,228.88 on Thursday.
However, the report added the capitalisation is likely to go down again in the near future before it sustainably stands above this mark.
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