Did India's Listed Firms Hit a One-Year Market Cap High?

Synopsis
Key Takeaways
- India's market capitalisation exceeds Rs 467 lakh crore.
- Driving factors include foreign investor buying and expectations of a trade deal.
- Sector gains seen in realty, IT, and banking.
- Investor sentiment bolstered by anticipated rate cuts.
- Expert outlook remains bullish for the short term.
New Delhi, Oct 17 (NationPress) The market capitalisation of India's publicly traded companies surged past Rs 467 lakh crore, achieving a one-year peak, thanks to renewed foreign investment and heightened optimism surrounding an India–US trade agreement.
This increase was also propelled by festive demand leading up to Dhanteras, improved forecasts for corporate earnings, and a consistent fall in crude oil prices, which collectively enhanced overall economic sentiment, according to analysts.
The total market capitalisation of all companies listed on the BSE exceeded levels last observed on October 1, 2024, and is currently only 2.3 percent away from the all-time high recorded on September 27, 2024. Since the beginning of October, investors have augmented market value by nearly Rs 16 lakh crore.
Gains were widespread, as stocks across large, mid, and small-cap categories saw increases. Both the Sensex and Nifty reached nearly four-month highs, climbing 3.6 percent thus far in October.
Analysts pointed out that investor confidence has improved due to anticipated rate cuts from the US Federal Reserve and the Reserve Bank of India, coupled with progress in India–US trade discussions, particularly regarding energy cooperation.
Key sectors driving this upward trend included realty, IT, and banking, with Nifty Realty rising 7 percent, while both Nifty Bank and Nifty IT gained 5.1 percent each.
Major indices like the BSE Midcap index increased by 3.66 percent, while the Smallcap index rose by 2.1 percent.
Experts conveyed that the short-term market outlook remains bullish, although it may enter a period of consolidation. The support levels for the Sensex are noted at 25,500-25,400, and for the Nifty at 83,200-82,900. Resistance levels for the Sensex are 25,725-25,800, while for the Nifty, they are 83,800-84,000.
In the last eight trading sessions, foreign institutional investors (FIIs) have emerged as net buyers in six instances, investing over Rs 4,000 crore in the secondary market. Concurrently, domestic institutional investors (DIIs) have put in over Rs 18,000 crore.