Indian equity markets have been a spectacle of investor optimism as they commenced the week with the market capitalisation of BSE-listed companies achieving an unprecedented milestone, soaring to an all-time high of Rs 401.10 lakh crore on Monday morning. The surge in market valuation was propelled by a record-breaking rally in the stock market, with the renowned 30-share BSE Sensex summiting its highest peak ever recorded.
This momentous occasion marks the first instance in history where the cumulative market capitalisation of all companies listed on the Bombay Stock Exchange (BSE) has surpassed the significant Rs 400 lakh crore threshold. At the opening bell, the BSE Sensex leapt an impressive 425.62 points to firmly plant its flag at a new zenith of 74,673.84.
The extraordinary rally in the equities sector has bloated the market capitalisation (mcap) of BSE-listed firms to touch a staggering figure of Rs 4,01,16,018.89 crore, equivalent to about USD 4.81 trillion. This represents a remarkable growth since July of the previous year when the mcap of these entities had crested the Rs 300-lakh-crore hill.
In the revelry of rising stocks, some companies notably outperformed within the Sensex group. Mahindra & Mahindra, Maruti Suzuki, Tata Steel, Bajaj Finserv, Power Grid Corporation of India, Reliance Industries, Axis Bank, and JSW Steel all registered significant gains, sharing the mantle of top achievers for the day. However, not all shared the same fate as some trailed behind in this financial festivity. Wipro, Nestle India, HDFC Bank, and Bajaj Finance were identified among the few who could not keep up with the vanguard and lagged in share price.
The wave of positivity wasn’t confined to the domestic front, as it also lapped at the shores of other Asian markets. Both Seoul and Tokyo secured positions in positive territory, exemplifying an optimistic regional outlook. However, this euphoria didn’t extend to all, as markets in Shanghai and Hong Kong experienced dips, standing in contrast to their prospering peers.
This upward dynamic finds resonance with the state of Wall Street, which concluded the week with tickers pointing to growth. This positive sentiment seems enduring as Foreign Institutional Investors (FIIs), key drivers in the equity markets, made net equity purchases worth Rs 1,659.27 crore on the last trading session before the weekend, according to data from stock exchanges.
Moreover, the global oil market has also played its part in the day’s proceedings. The global oil benchmark Brent crude saw a decrease of 1.36 percent, settling at USD 89.93 a barrel. This drop in oil prices could imply a favorable environment for the inflation outlook and thereby relieve some pressure on market valuations.
This significant benchmark in the stock market is indicative of the enduring faith investors place in the Indian economy’s potential for growth and stability, despite the global headwinds faced by financial markets worldwide. As companies navigate the choppy waters of international commerce and macroeconomic trends, this milestone serves as a testament to the robustness and attractiveness of the Indian stock market for both domestic and international investors.
