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    New record on Dalal Street! India market cap hits Rs 400 lakh crore for first time

    Synopsis

    Sensex and Nifty reach all-time highs, BSE market cap hits Rs 400 lakh crore. Retail investors drive growth, leading to unprecedented wealth creation. New listings and IPOs contribute to the gains in the ongoing bull run.

    New record on Dalal Street! India market cap hits Rs 400 lakh crore for first timeiStock
    On a day when both the Sensex and Nifty scaled fresh all-time peaks, the combined market capitalisation of all listed stocks on BSE hit the Rs 400 lakh crore milestone for the first time ever on Monday. With retail investors shifting their savings from traditional investment avenues, BSE’s m-cap has seen a growth of Rs 100 lakh crore in just 9 months.

    The Rs 300 lakh crore mark was touched on 5 July 2023 when Nifty was at 19,400-level. Since then the index is up over 16% and scaled a fresh peak of 22,623.90. The rally has been much sharper in smaller stocks with hundreds of small and midcap stocks giving multibagger returns.

    The Rs 100 lakh crore gain in the last 9 months also includes the impact of many new listings like IPOs, FPO or any other form of equity fundraising but most of the gains have been led by the sheer rise in share prices.

    India's market cap crossed the Rs 50 lakh crore mark in 2007, Rs 100 lakh crore milestone in 2014, and the Rs 200 lakh crore mark in February 2021.

    In terms of wealth creation, the ongoing bull run is unprecedented in India's history.

    In the last one year, PSU stocks have been one of the biggest outperformers with investors banking on 'Modi ki Gaurantee', govt's capex push and turnaround story. Both Nifty PSE index and Nifty CPSE have more than doubled in 12 months. Nifty PSU Bank is also up about 95%.

    The Nifty Microcap 250 index has rallied nearly 93%, Nifty Smallcap100 80% and Nifty Midcap100 66%.

    Going forward, central bank rate actions, outcome of the Lok Sabha elections, US presidential election and earnings season would be the major triggers for stock prices.

    Also Read | Smart Talk: Have Rs 10 lakh to invest in FY25? These 3 themes look promising

    "It is important to understand that macroeconomic expectations are changing fast. This year began with market expectations of seven rate cuts by the Fed in 2024. Then it came down to three and now many believe that the Fed may cut only twice this year. The strength of the US economy and labour market has surprised the majority of experts and market participants. Despite the scaling down of rate cut expectations the mother market continues to be buoyant, setting new records. This will provide the global support for equity markets like India," said Dr. V K Vijayakumar of Geojit Financial Services.

    India's capital markets have witnessed vibrant participation from domestic retail savers, with demat accounts surging to 151 million in March 2024 from 36 million in March 2019. Cumulative domestic equity inflows have amounted to $92.7 billion over the last five years

    "India Inc. has raised $92.9 billion through primary markets over the last five years. India now boasts a unique combination of ‘size and growth’. India’s GDP is likely to exceed $4 trillion in FY25/26 and $8 trillion by FY34," Motilal Oswal said.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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    (You can now subscribe to our ETMarkets WhatsApp channel)

    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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