The market valuation of BSE-listed companies crossed a record $4 trillion for the first time on November 29, on the back of positive market sentiment in Indian equities.
The market capitalisation of BSE-listed companies reached ₹333 lakh crore, or $4 trillion at the exchange rate of 83.31. It has climbed over $600 billion since the beginning of the year.
BSE-listed firms hit the $1-trillion market cap milestone in May 2007 and it took over 10 years to double. The market cap surpassed $2 trillion in July 2017. Meanwhile, BSE m-cap had hit the $3 trillion mark in May 2021.
In intra-day deals today, the BSE Sensex climbed 305.44 points to 66,479.64. The Sensex had hit a record 67,927.23 on 15 September this year. The benchmark is still 2 percent away from its peak.
Meanwhile, Nifty rose over 141 points to cross the 20,000 mark. Its intra-day high stood at 20,031.25. It also hit its record high of 20,222.45 in September 2023.
“The Nifty's recent crossing of the psychological level of 20,000 and the BSE market cap's ascent to the $4 trillion mark signal the start of a fresh momentum. Domestic liquidity has provided support, but the lack of foreign 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 investor (FII) inflows into the Indian equity market. Despite strong fundamentals, volatility is expected leading up to the state election results. However, any weakness caused by this could present a compelling buying opportunity. The market appears primed for a pre-election rally, and we can anticipate the Nifty soon surpassing 21,000. 19,500 will now serve as a support level," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
This surge comes after Fed Governor Christopher Waller flagged a possible rate cut in the months ahead.
Also, foreign institutional investors, who were on a selling spree in the last two months of September and October, have also begun buying Indian equities this month. In November month so far, net FII buying stands at ₹2,901 crore. This has also added to the positive market sentiment.
Overall in 2023, FIIs have bought Indian stocks worth around ₹1 lakh crore while domestic institutional investors (DIIs) have outpaced dollar money by investing ₹177.5 lakh crore.
Furthermore, recent upgrades by multiple global brokerages, decent earnings for the second quarter, and a fall in crude oil also aided the gain. JP Morgan, Morgan Stanley, CLSA, and Nomura recently upgraded India to an 'overweight' rating.
Investors now await India's GDP data for Q2 due later this week as well as the election results from the five states, the voting of which was completed on November 30. The final election results will be declared on December 3.
CLSA, in a recent note, said that it expects India's searing GDP growth to propel it to the top three of the globe’s largest economies, from just $3.4 trillion today to larger than Japan’s by 2027, hitting $29 trillion by 2047 and $45 trillion by 2052.
"China and the US will be the only economies that will be bigger than India by then. Looking beyond, we see the economy expanding from US$3.4tn today to US$29tn in 2047 and $45tn in 2052. If big bang reforms unleash efficiencies, India could overtake the US economy in size by 2052," CLSA said.
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Updated: 29 Nov 2023, 12:58 PM IST
Market cap of BSE-listed firms hit $4 trillion mark for the first time ever | Mint - Mint
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