M-cap of BSE listed companies hits $4 trillion mark for first time ever

The total market capitalisation (m-cap) of all BSE-listed companies hit $4.01 trillion or over Rs 333 lakh crore on Wednesday, climbing over $600 billion since the starting of the year.

The BSE-listed firms achieved a $1-trillion m-cap milestone in May 2007. The market cap surpassed $2 trillion in July 2017 and $3 trillion in May 2021.

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).

Indian equity benchmarks advanced today, led by information technology (IT) stocks, after dovish commentary from a US Federal Reserve official elevated bets of rate cuts by as early as March 2024.

IT companies (Nifty IT), which earn a significant share of their revenue from the US, moved 1.5 per cent higher after Fed Governor Christopher Waller flagged the possibility of lowering the interest rate in the months ahead if inflation continued to come down.

Nifty50 index reclaimed the 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," said Santosh Meena, Head of Research at Swastika Investmart.

"Market appears primed for a pre-election rally, and we can anticipate Nifty soon surpassing 21,000. 19,500 will now serve as a support level," he added.

On the stock-specific front, Hero MotoCorp was the top gainer in the Nifty50 pack as the stock jumped 2.68 per cent to trade at Rs 3,719.05. M&M, Wipro, Tech Mahindra and Britannia Industries gained up to 2.43 per cent.

In contrast, ONGC, Coal India, Nestle India, Adani Ports and Adani Enterprises were among the top laggards.

The overall market breadth was positive as 1,984 shares were advancing while 879 were declining on BSE.

Meanwhile, foreign portfolio investors have turned net buyers of Indian equities after two months, adding shares worth Rs 2,901 crore, as of November 28.

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