Market Capitalisation of BSE Listed companies hits $5 trillion first time

Yesterday, the combined market capitalization of companies listed on the Bombay Stock Exchange (BSE) surged past the unprecedented $5 trillion milestone. This significant milestone highlights India’s increasing importance in the global financial sphere.

Record Highs and Fluctuations

Despite closing with a slight decline, the  Sensex exhibited resilience throughout the trading session. At its peak, it soared to 74,189.19, reflecting a 0.24% increase. The day’s closing figure stood at 73,953.31, marking a minor dip of 0.07%. On a year-to-date basis, the Sensex has yielded returns of 2.33%. In contrast, the BSE midcap and BSE smallcap indices have outperformed, delivering impressive returns of 16.62% and 11% respectively.

Milestones in Market Cap

The BSE has witnessed a surge in its total market cap, from touching $4 trillion in November 2023, it has skyrocketed past the $5 trillion mark in just six months. The journey of BSE-listed companies in terms of market cap reflects significant milestones. From attaining the $1 trillion mark in May 2007, the market cap doubled over a decade to $2 trillion in July 2017. Subsequently, it reached $3 trillion in May 2021.

Sectoral Performance

In yesterday’s trading, metal stocks emerged as frontrunners, rallying by 4.08%. Utilities, power, commodities, and energy sectors also displayed notable gains. However, financial services, IT, telecommunications, auto, and banking indices experienced some setbacks.

Market Participants

Among the Sensex components, companies like Nestle, Maruti, and IndusInd Bank faced declines, while Tata Steel and JSW Steel were among the gainers. The broader market witnessed the midcap index reaching an all-time high of 43,223.69 and the smallcap index hitting a record peak of 48,099.29.

India’s Global Ranking

India’s stock market now holds the fifth position worldwide in terms of market cap. The United States leads the pack with a staggering market cap of $55 trillion, followed by China with $9.4 trillion, Japan with $6.4 trillion, and Hong Kong with $5.4 trillion. India’s achievement shows its growing influence in the global financial landscape.

Conclusion: The BSE benchmark’s upward trajectory in recent years shows confidence and market resilience. Despite occasional fluctuations, the overall trend remains bullish, reflecting India’s strong economic prospects and its evolving role in the global financial space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.