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On Tuesday, the total market capitalization of all stocks listed on the BSE briefly exceeded $5 trillion, marking a significant milestone for India. This achievement places India as the fifth country, following the US, China, Japan, and Hong Kong, to reach this mark. However, by the close of Tuesday’s trading, it settled at $4.97 trillion (₹414.62 lakh crore).
The journey to the $5 trillion milestone took less than six months, accomplished in 117 trading sessions. Notably, the market value of BSE-listed companies surpassed $4 trillion for the first time on November 29, 2023. Key contributors to the recent trillion-dollar surge in market capitalization included Reliance Industries, State Bank of India, LIC, Bharti Airtel, and Hindustan Zinc, accounting for nearly 15% of the increase. Reliance Industries alone saw an addition of $38 billion (₹3.19 lakh crore) in market cap since November 29, while SBI and LIC added $28 billion (₹2.33 lakh crore) and $26 billion (₹2.17 lakh crore), respectively.
The journey of BSE market capitalization milestones is notable: hitting $1 trillion in May 2007, $2 trillion in July 2017, and reaching the $3 trillion mark in May 2021. Presently, India contributes 4.19% of the global market capitalization, up from 3.6% at the beginning of the year. Since January 1, 2024, India’s overall market capitalization has surged by 11.5%, equivalent to ₹42.4 lakh crore.
Indian markets are seeing rapid growth due to increased trust in the market and private companies which can also be seen in the growing startup culture in India, specially in tier 1 and tier 2 cities which can be understood by looking at the number of Company Registration in Delhi and Company Registration in Jaipur
In parallel, the Nifty Midcap 150 index achieved an all-time high on Tuesday, continuing its recent record-breaking streak primarily fueled by a surge in public sector company shares. The index closed at 19,413, marking a record high, while the benchmark Nifty ended at 22,529.05, with a slight 0.1% gain. The India VIX, indicating market volatility, rose by 6.3% to 21.81, signaling traders’ concerns about near-term equity risks.
Over the past year, the Midcap 150 index has soared by 7,077 points, or 57%, with notable contributions from 10 stocks, including Hindustan Zinc, Suzlon Energy, Vodafone Idea, BHEL, and PB Fintech, which accounted for nearly 28% of the gains, totaling 1,960 points.