Augurs well for stock market: Credit Suisse
12 countries have topped the markContinuing rally in rupee
NEW DELHI: India has joined the elite club of 12 countries with a trillion dollar economy, thanks to the continuing rally in the rupee against the U.S. dollar.
The country's GDP crossed the trillion-dollar mark for the first time in history when the rupee appreciated to below the 41-level against the U.S. greenback on Wednesday, Swiss investment bank Credit Suisse said in a report published on Thursday.
Countries like the U.S., Japan, Germany, China, the U.K., France, Italy, Spain, Canada, Brazil and Russia have all breached the trillion-dollar GDP level in the past.
The bank put the country's GDP at around Rs. 41,00,000 crore, which translates to slightly more than one trillion dollar at the current currency level of Rs. 40.76 a dollar. Besides, the country's stock market capitalisation has risen to $944 billion, which is also closing fast on the trillion dollar level, it added. The rupee has gained close to 13 per cent since moving past 47 a dollar in July-August last year. Continuing its uptrend for the fifth day in a row, the Indian currency on Thursday rose to as high as 40.72 to a dollar, after breaching the 41-level on Wednesday to its highest level since May 1998. Before the rally began about a month ago when the rupee was hovering at 45 to a dollar, the country's GDP was estimated at around $900 billion.
India becoming a trillion dollar economy also augurs well for the country's stock market, as the Credit Suisse report said that stock markets in eight out of ten countries had risen in the one year after their economies first crossed this mark. Indian stock market has risen by about 15 per cent from its early April low on good quarterly results and a central bank decision this week to leave interest rates unchanged at its policy review. PTI