In a notable achievement, the collective market capitalization of companies listed on the BSE surpassed ₹400 lakh crore for the first time during today’s trading session. This milestone comes amidst a continued uptrend in the stocks of large, mid, and small-cap companies, which has extended for the third consecutive session, with heavyweight stocks playing a pivotal role in driving the surge.
The market sentiment has been buoyed by positive financial updates from several companies, setting an encouraging tone ahead of the upcoming earnings season.
The robust business performance reported by HDFC Bank, a heavyweight in the market, has significantly contributed to the overall index performance. Furthermore, strong auto sales figures have added to investor optimism regarding the expanding economy. Additionally, shares of Reliance Industries, the largest company in India in terms of market capitalization, have exhibited strong performance.
The 30-share BSE Sensex benchmark surged by 425 points, or 0.57 percent, reaching another all-time high of 74,676 points. Year-to-date, the index has recorded a gain of 3.28%. It concluded the calendar year 2023 with an impressive return of 18.74%.
The BSE, Asia’s oldest stock exchange, achieved a market capitalization of ₹100 lakh crore for the first time in March 2014, followed by ₹200 lakh crore in February 2021. It crossed the ₹300 lakh crore milestone in July 2023, and now, just nine months later, it has surpassed the ₹400 lakh crore mark.
Similarly, the cumulative market capitalization of companies listed on the NSE is also nearing the ₹400 lakh crore mark.
On December 1, 2023, the market capitalization of NSE-listed firms exceeded $4 trillion (₹334.72 lakh crore). The journey from $2 trillion in July 2017 to $3 trillion in May 2021 took approximately 46 months, while the subsequent leap from $3 trillion to $4 trillion occurred in just 30 months. The index took only three months to cover the next $0.75 trillion. The market rally was driven by significant retail participation and sustained inflows from foreign portfolio investors (FPIs), supported by improved global sentiment and robust domestic economic growth.
