Indian equity market enters coveted $4 T market cap club for first time ever

The total valuation of exchange-listed companies went past the $1 trillion level on May 28, 2007.

Indian equity market enters coveted $4 T market cap club for first time ever

Wednesday November 29, 2023,

3 min Read

The combined market valuation of all listed companies on the leading stock exchange BSE reached the $4 trillion milestone for the first time ever on Wednesday, mirroring a positive trend in equities.

What is remarkable about this feat is that it took just two-and-a-half years to hit the $4 trillion landmark after the market capitalisation (m-cap) of all listed companies on the BSE touched the $3 trillion mark on May 24, 2021.

The total valuation of exchange-listed companies went past the $1 trillion level on May 28, 2007.

The journey from $1 trillion to $1.5 trillion was covered in 2,566 days or just over seven years on June 6, 2014.

The market cap of listed companies reached $2 trillion on July 10, 2017 -- taking 1,130 days from the $1.5 trillion level. It took ten years for the exchange to reach from $1 trillion level to $2 trillion in market capitalisation.

From there, it took 1,255 days to go past the $2.5 trillion mark on December 16, 2020.

In the equity market, the 30-share BSE Sensex jumped 727.71 points or 1.10% to settle at 66,901.91 after beginning the day on a positive note. During the day, it zoomed 772.08 points or 1.16% to 66,946.28.

BSE

Source: Google Finance

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Thanks to the optimism in equities, the market capitalisation of BSE-listed companies reached Rs 3,33,26,881.49 crore in morning trade, translating into $4 trillion at the exchange rate of 83.31.

It finally stood at Rs 3,33,29,095.37 crore at the end of trade, translating into $4 trillion. The combined market capitalisation of BSE-listed firms hit an all-time high of Rs 333.29 lakh crore.

While the BSE benchmark Sensex has rallied 6,061.17 points or 9.96% so far this year, the market capitalisation of all listed firms on BSE has gone up by Rs 50.90 lakh crore.

The 30-share benchmark hit its all-time peak of 67,927.23 on September 15, this year.

Globally, the other markets valued more than $4 trillion by market cap include the US with a market valuation of $47.78 trillion, China ($9.74 trillion), Japan ($6.02 trillion) and Hong Kong ($4.78 trillion), according to HDFC Securities.

"The BSE market cap's ascent to the $4 trillion mark signals the start of a fresh momentum in the stock market. Indian stock market is rallying due to solid Q2 earnings and a drop in crude oil prices. Domestic liquidity has provided support to the market, but the lack of foreign fund inflows due to high US bond yields has been a hindrance.

"Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract Foreign Institutional Investors (FIIs) into the Indian equity market," said Satish Menon, Executive Director, Geojit Financial Services.

A rally in the broader market also added to the overall optimism. The BSE smallcap gauge has jumped 11,062.78 points or 38.24% so far this year while the midcap index climbed 8,661.06 points or 34.21%.

Also, a number of mainboard Initial Public Offerings (IPO) and listing of shares have propelled the rally in the equity markets.

"Indian market cap has risen the most in this fiscal aided by FPI flows and earnings resilience," said Deepak Jasani, Head Retail Research, HDFC Securities.

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