M-cap Milestone: For the first time ever, the market-capitalisation (m-cap) of companies listed in BSE has hit $4.01 trillion or over Rs 333 lakh crore on Wednesday. This shows that the m-cap has climbed over $600 billion since the starting of the year.
It was in May 2007, the BSE-listed firms achieved the feat of touching $ 1 trillion m-cap. Later in July 2017 it surpassed $2 trillion and $3 trillion in May 2021.
The advancement in the Indian equity benchmarks was led by information technology (IT) stocks. The IT stocks moved 1.5% higher, after a dovish commentary from a US Federal Reserve official elevated bets of rate cuts by as early as March 2024. The Nifty50 index also regained its 20,000 mark for the first time since September 20, 2023.
"Nifty's crossing 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," Santosh Meena, Head of Research at Swastika Investmart told Business Today.
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).