BSE-listed firms regain $5 trillion market cap on easing geopolitical tensions
Mumbai, June 17
The total market capitalisation of all companies listed on the BSE crossed the $5 trillion mark on Wednesday, reaching its highest level in nearly six weeks as a rally in domestic equities gathered pace amid easing geopolitical concerns and falling crude oil prices.
The momentum comes after a strong recovery in the broader market over the past few sessions, supported by improved investor sentiment following developments related to the proposed US-Iran peace agreement and a sharp moderation in global oil prices.
According to analysts, the decline in crude oil prices, coupled with a drop in volatility indicators, helped improve risk appetite and supported gains across equities.
In addition, the rally has added more than 6 per cent to the market value of BSE-listed firms over the last four trading sessions.
Broader market indices continued to outperform benchmark gauges.
While Sensex has posted moderate gains since April, midcap, smallcap and microcap stocks have delivered stronger returns, reflecting wider participation in the ongoing market recovery.
The experts believe that easing tensions in West Asia could provide relief to India's macroeconomic outlook by reducing pressure on inflation, the current account balance and corporate earnings.
Domestic equities have remained resilient despite persistent foreign institutional investor (FII) selling, largely due to steady inflows from domestic investors. Any improvement in foreign fund flows could provide an additional boost to market sentiment in the coming months, they said.
They further pointed to India's long-term growth prospects, citing structural reforms, improving corporate balance sheets and rising capital expenditure as key drivers.
Corporate investment activity has strengthened significantly in recent years, while leverage levels have moderated and cash-flow generation has remained healthy, according to them.
Domestic equity benchmarks traded higher on Wednesday, with the 30-share index jumping as much as 0.53 per cent or over 400 points so far to 77,219. Similarly, Nifty traded 0.50 per cent or more than 100 points higher at 24,108.
Moreover, Sensex surged over 2 per cent in the last three sessions to today's high against Friday's closing of 75,527.95.
Analysts have expected that sectors such as banking, telecom and information technology will play an important role in the next phase of the market recovery.
— IANS
Reader Comments
Impressive resilience from Indian markets despite global headwinds. The easing US-Iran tensions and falling crude are certainly helping, but the structural reforms and corporate health mentioned are what really matter long-term. Banking and IT sectors could lead the next leg up. FII flows returning would be the cherry on top! 📈
It's good to see the markets recovering, but I worry about the common man. Food inflation and fuel costs are still high. Falling crude oil prices should bring some relief at the petrol pump, but will it really reach the consumer? Also, midcap and smallcap rally is great, but retail investors should be careful—not all that glitters is gold. Diversify properly.
Love seeing domestic investors driving this rally! Shows how far we've come from relying on foreign money. The $5 trillion milestone is great, but we need to see macro stability with lower inflation before I fully celebrate. Meanwhile, good time for those in IT and banking stocks like the analysts say. Let's hope this momentum continues through the monsoon season! ☀️📊
This is a clear sign that India's fundamentals are strong. Easing geopolitical tensions and lower crude are tailwinds, but the real story is corporate balance sheets and capex. The government's push on infrastructure is paying off. I'm bullish on banking and telecom for the next phase. But let's not get too complacent—global uncertainties are still there.
The rally is fine for investors, but what about the aam aadmi? My family still feels the pinch of
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