India’s mcap crosses $5tn for 1st time, $1tn added in 6 mths

MUMBAI: For the first time, the total market value of all listed companies in India rose above the $5-trillion mark in intraday trades on Tuesday.
At close of the day’s trade, however, it settled just a tad below the milestone. Tuesday’s feat made India the fifth stock market in the world to achieve this milestone, behind the US, China, Japan and Hong Kong.
As markets closed on Tuesday, BSE’s market cap stood at Rs 414.6 lakh crore, translating to $4.97 trillion. If we take into consideration the market cap of some large companies that are listed only on the NSE – like BSE and CDSL – India’s total market cap will be Rs 415.2 lakh crore or $4.98 trillion.

Having crossed the $4-trillion mark on Nov 29, 2023, it took India about six months to add another $1 trillion. In March 2007, when the first trillion mark was hit (see graphic), it took a little over 10 years for India to reach the $2 trillion value. Then, it crossed the $3-trillion mark in mid-May 2021.
Reaching the $5-trillion market cap is a major milestone that reflects the sustained momentum of the Indian stock market, V K Vijayakumar, chief investment strategist at Geojit Financial Services, said. “It is important to understand that this landmark was reached when the market was range-bound, implying that the contribution to the day’s up move in market cap came from the broader market. PSUs have contributed significantly to this achievement,” Vijayakumar said.
Moreover, this milestone comes at a time when the markets are witnessing heightened volatility with India VIX – the index of volatility in the market or the ‘fear gauge’ – at a 17-month high. In addition, foreign funds have been aggressive sellers while domestic funds have been buyers that are not only cushioning the market but also helping it rally.
On Tuesday, the sensex closed at 73,953 points, down 53 points, while Nifty closed at 22,529 – up 27 points. During the session, foreign portfolio investors were net sellers at Rs 1,875 crore while domestic institutional investors remained net buyers at Rs 3,549 crore, BSE data showed. Reliance Industries, with a market cap of Rs 19.4 lakh crore, is the most valued company in India, followed by TCS (Rs 13.8 lakh crore), HDFC Bank (Rs 11.1 lakh crore), ICICI Bank (Rs 7.9 lakh crore) and Bharti Airtel (Rs 7.6 lakh crore), BSE data showed.