In a significant milestone for India’s financial markets, the combined market capitalization of companies listed on the Bombay Stock Exchange (BSE) surged past the ₹400 lakh crore mark for the first time on Monday. This remarkable achievement was fueled by robust inflows from domestic funds, propelling the benchmark Sensex towards the historic 75,000 level.
The journey to this unprecedented milestone has been notably swift, with the last ₹100 lakh crore in market capitalization added in just nine months. Local investors played a pivotal role in this ascent by injecting substantial funds into the market.
A glance back to July 5, 2023, reveals that the market cap breached the ₹300 lakh crore mark when the Sensex was at 65,446. Since then, the index has witnessed a commendable rally of over 14%, while the broader market capitalization has surged by an impressive 34%. Particularly noteworthy is the sharp appreciation seen in non-index stocks, especially within the mid and small-cap segments.
On Monday, the Sensex reached a new pinnacle, touching 74,869.3 before concluding the session at 74,742.5, marking a gain of 0.7%. Similarly, the Nifty hit 22,697.30 and settled at 22,660.95, also recording a 0.7% increase.
The surge in market capitalization has seen the emergence of new players, with newly listed companies like Jio Financial Services contributing approximately ₹8 lakh crore since July 5, 2023. Notably, Reliance Industries led the pack by adding ₹2.61 lakh crore to its market capitalization during this period. Other significant contributors include HDFC Bank, TCS, and Life Insurance Corporation of India, adding ₹2.39 lakh crore, ₹2.38 lakh crore, and ₹2.33 lakh crore, respectively.
The market’s trajectory underscores the resilience and dynamism of India’s capital markets, with milestones such as the ₹100 lakh crore, ₹200 lakh crore, and ₹300 lakh crore market capitalization marks achieved in March 2014, February 2021, and July 2023, respectively.
Key market players are optimistic about India’s economic prospects, citing favorable macro and micro tailwinds such as moderating inflation, stable currency, and robust corporate earnings. Ajay Menon, MD and CEO of broking and distribution at Motilal Financial Services, highlighted India’s unique combination of ‘size and growth,’ with GDP projected to exceed $4 trillion in FY25 or 26.
Domestic institutional investors have played a significant role in driving market momentum, with investments amounting to ₹1.85 lakh crore in 2023 and ₹1.12 lakh crore so far in 2024.
The overall market capitalization of BSE-listed companies has witnessed a remarkable 55% increase since April 2023, totaling ₹143 lakh crore. In contrast, the Sensex recorded a 27% gain during the same period, underlining the broader market’s robust performance.
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