Synopsis
On March 24, India’s stock market posted a remarkable 9.4% gain, leading the world’s largest equity markets. This significant increase marks the highest monthly growth in four years, with total market capitalization rising to approximately $4.8 trillion.Key Takeaways
- India's stock market saw a 9.4% gain in March.
- Total market capitalization reached $4.8 trillion.
- The RBI may consider cutting interest rates soon.
- Investor sentiment has improved following US Federal Reserve indications.
- Short-term traders are advised to book profits.
Mumbai, March 24 (NationPress) India’s stock market achieved the highest monthly gain among the globe's ten largest equity markets in March, increasing by 9.4 percent in dollar terms, according to the latest stock exchange data.
This represents the most significant rally in four years, following a streak of five months of downturn.
As per the exchange reports, the overall market capitalization of all listed entities on the Bombay Stock Exchange (BSE) soared to about $4.8 trillion, up from approximately $4.39 trillion at the end of February.
This marks the largest monthly increase since May 2021. India surpassed other significant markets, with Germany trailing far behind at a mere 5.64 percent rise in market capitalization to over $2.81 trillion.
Japan and Hong Kong experienced gains of 4.9 percent and 4 percent, respectively, while France, the United Kingdom, and Canada also reported modest growth.
In stark contrast, the United States, the world’s largest equity market, registered a decline of 3.7 percent, and Saudi Arabia fell by 4.4 percent.
Indian equity benchmarks Sensex and Nifty both climbed 5 percent in March, while the broader BSE MidCap and SmallCap indices witnessed even steeper increases of 8.4 percent and 9.8 percent, respectively.
This rally was propelled by value buying and rising expectations that the Reserve Bank of India (RBI) may soon reduce interest rates.
Investor sentiment also improved after the US Federal Reserve hinted it could lower interest rates twice in 2025.
India’s inflation rate has remained below the RBI’s medium-term target of 4 percent, bolstering hopes of a rate cut announcement in the upcoming April policy review.
Analysts are also anticipating fresh liquidity measures from the RBI, which has already injected approximately Rs 3 lakh crore into the banking system through various initiatives like repo auctions and open market operations.
Market experts suggest that short-term traders might consider locking in profits after the sharp rally, while long-term investors should remain invested, as further gains are possible if corporate earnings stay robust.
While market conditions can fluctuate, experts recommend emphasizing fundamental analysis over short-term market movements.
