India has slipped to the seventh position in ranking of nations by market capitalisation (m-cap) with the rout in Adani Group stocks continuing to make a dent in the country’s standing. The United Kingdom has surpassed India to occupy the sixth place.

The latter had overtaken its former colonial ruler just nine months ago to break into the top five for the first time. In less than two months, the domestic market’s rank has dropped two places.

On January 31, France had dislodged India from the fifth position. So far this year, India’s m-cap is down by $231 billion, or 6.93 per cent, to $ 3.1 trillion.

The Adani Group has accounted for more than 60 per cent of the losses, with the group m-cap seeing an erosion of nearly $145 billion year-to-date (YTD). India’s contribution to the world m-cap too has slipped below 3 per cent after having topped 4 per cent in October 2022. The Indian market is by far the worst-performer in top 10, with other markets catching up to its outperformance seen last year. India’s expensive valuations and governance concerns in the Adani Group have weighed on investor sentiment, say analysts.