Mumbai, April 30 -- India's stock market is back near levels last seen almost two decades ago, with the market cap-to-GDP ratio, or the Buffett Indicator, at 137.70% in 2025-its highest since 146.52% in 2007, according to Mint's analysis of Bloomberg data.

While a high ratio can signal 'expensive' valuations in a textbook sense, several market participants say, this time, it may point to a different narrative.

Even as India's market cap-to-GDP ratio hovers near its 2007-08 bull run peak, the backdrop today is markedly different. A larger share of the economy is now formalised, with far more companies listed than in the past, which has changed the context meaningfully, according to market participants.

While a high ratio traditionally s...