D-St Bull Run: India's total market capitalization hit Rs 400 lakh crore mark

The total market capitalization of all BSE-listed firms scaled a record mark of Rs 400 lakh crore, thanks to a strong buying interest at Dalal Street on Monday. The headline indices- BSE Sensex hit new highs of 74,673.84, while NSE's Nifty50 index topped 22,630.90 mark for the day.

Buying was not only restricted to the blue-chip counters as broader markets also participated in the rally. The BSE midcap index scaled an all-time record level of 41,113.16, while the smallcap index was merely inches away from its new life-time highs. The BSE had added Rs 100 lakh crore of marketcap in just 9-months.

FPI selling will be limited despite the high US bond yields  since the Indian stock market is bullish and has been setting new records consistently, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "An important trend in FPI activity is the big selling in the FMCG segment and big buying in telecom and realty," he said.

In the last one year, the BSE Sensex has rallied about 25 per cent, while the Nifty50 index has gained about 30 per cent. Broader markets have seen a spectacular run as the BSE midcap and smallcap indices have rallied close to 67 per cent each during the last 12-months period.

The market capitalization also includes the new debutants of Dalal Street. In the financial year 2023-24, a total of 24 IPOs, including REITs and InvIT issues, raised more than Rs 67,500 crore. The S&P BSE IPO index surged 69 per cent during the financial year 2023-24.

The pace of the current bull run is unprecedented in India's history in terms of wealth creation, said the market experts but one needs to be cautious over the secular rally and lofty valuations, they say.

Investors are expected to closely monitor developments in the upcoming weeks as Q4 results are unveiled. The auto sector anticipates positive results in Q4 due to volume growth in the premium segment and higher price realisation. While weakness in the commercial vehicle and tractor segment continues owing to high base and lower reservoir level, said Vinod Nair, Head of Research, Geojit Financial Services

"However, the ongoing correction trend in the IT sector, influenced by global uncertainties, is anticipated to persist in the medium term, particularly with muted quarterly expectations. Further, the release of US non-farm payroll and unemployment data later today will provide more insights into the Fed's rate trajectory," he said.

The last one year has been a historic year for India's PSU companies on the back of the government's push on the capex and infrastructure sector. The Nifty PSE Index has more than doubled in the last one year, while the Nifty PSU Bank is also up 95 per cent in the last one year.