Did the Combined Value of BSE-Listed Firms Reach an 11-Month High of Rs 465 Lakh Crore?
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Synopsis
The recent surge in the combined value of BSE-listed firms to Rs 465 lakh crore reflects a strong market recovery and optimism over trade talks and interest rates. This article explores the driving factors behind this impressive milestone and its implications for investors.
Key Takeaways
- Combined valuation of BSE-listed firms reaches Rs 465 lakh crore.
- Boost from India-US trade talks and US Fed rate cut hopes.
- Strong performance in state-owned enterprises contributes to the rally.
- Mid-cap and small-cap stocks show robust gains.
- Potential growth in corporate earnings expected due to GST reforms.
Mumbai, September 18 (NationPress) The total valuation of companies listed on the Bombay Stock Exchange has surpassed Rs 465 lakh crore, achieving its highest point in the past 11 months.
This remarkable increase was driven by a broad market rally and renewed confidence surrounding the revival of India–US trade discussions alongside anticipated reductions in US Federal Reserve interest rates. The current valuation is merely 2.7 percent below the historic high noted on September 27, 2024, with nearly Rs 20 lakh crore added since the start of September.
Furthermore, expectations of a possible interest rate cut by the Reserve Bank of India (RBI) in October further uplifted investor morale, as domestic inflation trends appear to be easing.
Key indices such as Sensex and Nifty climbed by approximately 3.5 percent this month, narrowing the gap to record highs observed on September 26, 2024.
State-owned enterprises significantly contributed to this market surge, propelling the BSE PSU Index up by 7.5 percent, while the BSE 500 saw a 5 percent increase. The BSE Auto index rose by 9 percent, BSE Bankex increased by 6.8 percent, BSE Metal gained 8.1 percent, and Oil & Gas surged by 4.5 percent.
Mid-cap and small-cap stocks also exhibited robust performance, with the BSE MidCap index increasing by 4.7 percent and SmallCap up by 6 percent.
Experts suggest that the Indian stock market is unlikely to be adversely affected by the US Federal Reserve's decisions. They attribute the ongoing market rally to optimistic expectations regarding a resurgence in corporate earnings in India.
Market analysts foresee a strong possibility of over 15 percent growth in corporate earnings in the fiscal year FY27, thanks to GST reforms, which could lead to a positive shift in foreign portfolio investor (FPI) sentiment.
However, some analysts caution that while valuations may be high, the momentum in earnings is poised to improve, particularly in banking, non-banking financial companies (NBFCs), and consumer sectors.
Meanwhile, the Nifty 50 index maintained a strong position above the 25,300 mark in the last trading session, reinforcing investor confidence and signaling comfort at elevated levels.
Experts indicate that the index now displays potential upside momentum, with resistance anticipated around the 25,400–25,500 range, while support levels remain stable in the 25,000–24,900 areas.
Point of View
While the current surge in the stock market showcases resilience and potential growth, caution is warranted. The ongoing developments in global trade and monetary policy will continue to shape investor sentiment. It is crucial for stakeholders to remain informed and prepared for any market fluctuations.
NationPress
20/09/2025
Frequently Asked Questions
What factors contributed to the recent rise in BSE-listed firms' valuation?
The valuation increase is attributed to a broad market rally, optimism regarding India-US trade discussions, and anticipated interest rate cuts by the US Federal Reserve.
How does the Reserve Bank of India's potential easing affect the market?
Expectations of a potential rate cut by the RBI in October have boosted investor sentiment, as domestic inflation is showing signs of softening.
What is the outlook for corporate earnings going forward?
Analysts predict a strong possibility of over 15 percent growth in corporate earnings in FY27, driven by GST reforms and improving FPI sentiment.
Which sectors are expected to drive earnings momentum?
Earnings momentum is expected to improve, particularly in the banking, NBFCs, and consumption sectors.
What are the current resistance and support levels for the Nifty 50 index?
Resistance is anticipated around the 25,400–25,500 range, while support levels remain stable between 25,000–24,900.
