India’s Market Valuation Hits Historic $4 Trillion Milestone

India's Market Valuation Hits Historic $4 Trillion Milestone

VoM News Desk | November 29, 2023 | 12:59 PM IST | Breaking News | Follow on Google News

India’s Market Valuation Hits Historic $4 Trillion Milestone

India’s Market Valuation Hits Historic $4 Trillion Milestone

BSE Firms Surpass $4 Trillion Mark
The market valuation of BSE-listed companies in India reached a new pinnacle, crossing the $4 trillion mark for the first time on November 29. This significant milestone was fueled by a buoyant sentiment in the Indian equity market. The total market capitalization of these companies soared to ₹333 lakh crore, equivalent to $4 trillion, given the exchange rate of 83.31. Since the beginning of the year, the market cap has seen a remarkable rise of over $600 billion, reflecting the robust growth trajectory of the Indian market.

Journey to $4 Trillion: A Decade of Growth
The journey of BSE-listed firms to this colossal figure is a story of consistent growth and market resilience. The first $1-trillion market cap was achieved in May 2007, and it took more than a decade to double this figure, reaching $2 trillion in July 2017. The $3 trillion mark was hit in May 2021, indicating a quicker pace of growth. The BSE Sensex, during intra-day trades, climbed 305.44 points to 66,479.64, nearing its record high of 67,927.23 set in September this year. Similarly, the Nifty surged over 141 points, crossing the 20,000 threshold, drawing closer to its September peak.

Global Factors and Future Prospects
The recent surge can be attributed to various global and domestic factors. A potential rate cut signaled by Fed Governor Christopher Waller and a change in the investment pattern of foreign institutional investors (FIIs), who turned buyers in November, contributed to this positive momentum. FIIs have invested approximately ₹1 lakh crore in 2023, while domestic institutional investors (DIIs) have injected a staggering ₹177.5 lakh crore. Brokerage upgrades, strong second-quarter earnings, and a decline in crude oil prices have further bolstered the market. Upgrades from JP Morgan, Morgan Stanley, CLSA, and Nomura to an ‘overweight’ rating have also played a role. As investors await India’s Q2 GDP data and state election results, CLSA forecasts India’s GDP growth propelling it to the world’s top three economies, potentially surpassing the US by 2052.

VoM News Desk

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