Technology dominating global market capitalization, reaching near 40% with significant concentration

New Delhi, March 5 (IANS) Technology sector’s dominance in the global market has surged to nearly 40 per cent, a level never seen before, according to a report by DSP Mutual Fund. Nasdaq composite now holds almost a quarter of the world’s equity market capitalisation.

The report highlights that the technology sector’s share in world market cap is nearing 40 per cent when tech companies from China, India, EU, and ROW are considered. This concentration surpasses any sector in history, with the oil & gas sector being the closest at a third of the market capitalisation in the 1980s.

The rise in technology’s dominance has led to unprecedented growth in the sector, with the Nasdaq composite gaining 8 per cent in market cap share since the Covid downturn. While the IT sector has been flourishing, other sectors have lagged behind, making the rally highly concentrated and driven by select companies.

The report also notes that the tech rally is increasingly focused on specific companies, with Nvidia leading the returns in NYSE FANG+ and other cohorts. The market narrative is now shifting to a new concept called the Super Six, excluding Tesla from the mix, as only semiconductor stocks or those related to AI have seen significant performance. The broader market remains subdued, according to the report.


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