The Bombay Stock Exchange (BSE) hit a historic milestone today as the market capitalization of its listed companies exceeded $5 trillion for the first time, powered by a strong rally in metal, power and CPSE stocks.
Although the Sensex index is 1.66% below its record high, the BSE Midcap and Smallcap indices have reached new heights.
The total market cap of all BSE-listed companies reached a lifetime peak of Rs 414.46 trillion ($5 trillion), marking a $633 billion increase since the beginning of the year.
In less than six months, Dalal Street’s market capitalization has jumped from $4 trillion on November 29, 2023, to $5 trillion on May 21.
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This rapid growth is not usual in market history. Currently, the Nifty is about 250 points below its all-time high, while mid and small-cap indices reached new peaks on Tuesday.
The current bull market is fueled by domestic institutional, retail, and high net-worth investors, even as Foreign Institutional Investors (FIIs) have withdrawn at least Rs. 28,000 crore this month from Dalal Street.
Unexpected Market Growth
Market experts predict that the next major triggers for the BSE Sensex and Nifty50 will be the Lok Sabha election results in June and the upcoming full-year Budget. Additionally, the potential for a US Federal Reserve rate cut could also influence market sentiment.
India’s stock market capitalization first reached $1 trillion on May 28, 2007. It took another decade to hit $2 trillion on May 16, 2017. The growth then accelerated, reaching $3 trillion in just four years on May 24, 2021.
It’s also believed that by 2027, India could rank third globally in terms of its economy, with its market value hitting $10 trillion by 2030, based on historical trends and new listings.
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Due to its growth, India has become a desirable location for investors interested in emerging markets all over the world. The size of the market is also expected to increase, making it harder for major investors to ignore it and offering sufficient liquidity for both.
In recent years, India’s market has grown a lot. Now, 500 stocks are worth $1 billion each. Plus, India has given good returns in the last 5, 10, 15, and 20 years.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing.
