India’s Market Cap is Down 23%—But Indices Haven’t Fallen as Much. Why? India’s total market cap has dropped 23%, from $5.11 trillion to $3.90 trillion. But major indices like Nifty 50, Nifty 100, Nifty 200, Mid & Small Cap haven’t fallen nearly as much. Shouldn’t market cap decline less than indices, considering new IPOs add to it? Two key reasons explain this disconnect: 🔹 INR Depreciation Against USD Market cap is often tracked in USD, and a weaker rupee makes it look like the market has lost more value than it actually has. 🔹 Index Weighting vs. Actual Market Cap • HDFC Bank (₹13L Cr Market Cap) has 10%+ weight in Nifty 50. • TCS (₹14L Cr Market Cap) has less than 4% weight in Nifty 50. • If TCS falls and rise more than HDFC Bank , total market cap takes a bigger hit than Nifty 50. • If HDFC Bank moves, it impacts Nifty 50 more than total market cap. This structural difference distorts how index levels and total market cap move. 📉 Market cap isn’t just about index movement—it’s also about currency effects and weightage mechanics! Do let me know if you wants to know more! _*`~ Vijai Mantri`*_