While the BSE benchmark Sensex has rallied 5,333.46 points, or 8.76 per cent, so far this year, the market capitalisation (mcap) of all listed firms at its platform has jumped Rs 48.67 lakh crore
Mumbai:
For the first time, the combined market capitalisation of BSE-listed firms hit an all-time high of Rs 333 trillion (USD 4-trillion) on Wednesday.
With optimism back in equities, the market capitalisation of BSE-listed companies reached Rs 3,33,26,881.49 crore in morning trade, translating into USD 4 trillion at the exchange rate of 83.31.
A rally in the broader market also added to the overall optimism. The BSE smallcap gauge has jumped 11,062.78 points or 38.24 per cent so far this year while the midcap index climbed 8,661.06 points or 34.21 per cent.
Also, a number of mainboard Initial Public Offerings (IPO) and listing of shares have propelled the rally in the equity markets.
The BSE-listed firms achieved a $1-trillion m-cap milestone in May 2007. The market cap surpassed $2 trillion in July 2017 and $3 trillion in May 2021.
Among global markets, the Indian stock indices is ranked fifth in terms of market value, behind the US ($47 trillion), China ($9.7 trillion), Japan ($5.9 trillion) and Hong Kong ($4.8 trillion).
At the end of trade on Tuesday, the market capitalisation of BSE-listed companies reached Rs 3,31,05,425.71 crore, which translates to USD 3.97 trillion at the current exchange rate of 83.34, thanks to a fag-end recovery in the equity market after a highly volatile trade.
“The rise in Nifty 50 above 20,000 is predominantly driven by falling U.S. Treasury yields which has brought back foreign buying in domestic equities,” said Aishvarya Dadheech, founder of Fident Asset Management.
Foreign institutional investors, who were on a selling spree in the last two months of September and October, have now begun to be net buyers of Indian stocks. In November month so far, net FII buying stands at Rs 2,901 crore, shows NSDL data.
According to Bloomberg data, India’s market cap has risen nearly 15 per cent so far this calendar year, even as China’s has seen a 5 per cent erosion in its market cap.
”The BSE market cap’s ascent to the $4 trillion mark signals the start of a fresh momentum in the stock market. Indian stock market is rallying due to solid Q2 earnings and a drop in crude oil prices. Domestic liquidity has provided support to the market, but the lack of foreign fund inflows due to high US bond yields has been a hindrance.
”Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract Foreign Institutional Investors (FIIs) into the Indian equity market,” said Satish Menon, Executive Director, Geojit Financial Services.
”Indian market cap has risen the most in this fiscal aided by FPI flows and earnings resilience,” said Deepak Jasani, Head Retail Research, HDFC Securities.
The US is the only market in the top-10 market cap club which has grown at a faster clip than India at 17 per cent.
The combined world market cap has grown 10 per cent this year to $106 trillion.
The 30-share BSE benchmark Sensex hit its all-time peak of 67,927.23 on September 15, this year.
While the BSE benchmark Sensex has rallied 5,333.46 points, or 8.76 per cent, so far this year, the market capitalisation (mcap) of all listed firms at its platform has jumped Rs 48.67 lakh crore.
The 30-share BSE Sensex climbed 204.16 points or 0.31 per cent to settle at 66,174.20 on Tuesday.
”After last week’s range-bound trend, markets registered gains led by uptick in power, metal and auto stocks as hopes of strong growth momentum going ahead and receding worries of rate hikes in the US strengthened the mood,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
”FIIs turning net buyers of local equities in the last few sessions too has brought some cheers to the market, even as caution could prevail in next few sessions ahead of monthly F&O expiry and exit poll results of five state elections later this week,” Tapse said.
Among the Sensex firms, Tata Motors, Bajaj Finserv, UltraTech Cement, Bajaj Finance, NTPC, Bharti Airtel, Titan and Axis Bank were the major gainers.
ITC, ICICI Bank, Power Grid and HDFC Bank were among the laggards.
In the broader market, the BSE midcap gauge climbed 0.30 per cent while the smallcap index gained marginally by 0.06 per cent.
Among the indices, utilities rallied 3.64 per cent, power jumped 3.47 per cent, oil & gas climbed 3.13 per cent, energy (2.27 per cent), services (2.02 per cent), commodities (1.27 per cent) and metal (1.13 per cent).
FMCG, industrials, telecommunication and capital goods were the laggards.