Market cap on BSE hits record high of $3 trillion

Market capitalisation of all BSE-listed companies hit the $3 trillion mark today for the first time.

"Market capitalization of equities of listed companies on @bseindia reached $3 trillion intra day for the first time ever. A great milestone on a long journey. Congratulations to all 6.9 crore+ registered investors, 1400+ brokers, 69,000+ MF distributors and 4700+ companies," Ashishkumar Chauhan, CEO of BSE said in a tweet.

The record rise in market wealth comes at a time when Sensex and Nifty are trading below their all time high levels. Sensex and Nifty scaled record highs of 52,516 and 15,431 on February 16 this year led by extension of gains after investors cheered Union Budget on February 1.

The rise in BSE market cap can be attributed to a 20.78% gain in the midcap index since the beginning this year. It closed 0.86% or 183 points higher at 21,669 today against previous close of 21,485.

Similarly, small cap stocks have outperformed the market since the beginning of this year. BSE small cap index has clocked 28.70% gains during the period.

The BSE small cap index ended 161 points or 0.70% higher at 23,291 today against previous close of 23,130. In comparison, Sensex has gained just 6.07% or 2,900 points since the beginning of this year. Nifty has risen 8.70% or 1,215 points higher during the same period.

Investor wealth has been touching fresh records this year. The market cap has been rising despite selling by foreign institutional investors. According to the depository data, foreign portfolio investors (FPIs) withdrew Rs 6,370 crore from equities and pumped in Rs 1,926 crore in the debt segment between May1-21, 2021.

On February 4, 2021, market cap of BSE-listed firms crossed Rs 200 lakh crore for the first time after Sensex scaled a high of 50,474. Investor wealth rose to Rs 200.11 lakh crore against the previous close of Rs 198.43 lakh crore on BSE. Currently, market wealth on BSE stands at a fresh record high of Rs 218.97 lakh crore.

The rise in market cap came after Sensex closed 111 points higher at 50,651 and Nifty rose 22 points to 15,197 today. With a decline in Covid cases, Sensex has reclaimed the 50,000 level. Daily COVID-19 infections in India dipped to 2.22 lakh in the last 24 hours, the lowest in around 38 days, pushing the total tally of coronavirus cases to 2.67 crore while the death toll crossed the 3-lakh mark, according to the Union Health Ministry data updated on Monday.

In the last seven sessions, the 30-stock index has zoomed 2,000 points.

On Friday, Sensex closed 975 points higher at 50,540 and Nifty rose 269 points to 15,175. The rally was led by banking stocks after country's largest lender SBI announced its Q4 earnings.