Mcap on BSE hits $4-trn milestone
Key indices rise over 1% on strong listing gains of ongoing IPOs and Dovish statements from US Fed
Profit booking snaps 3-day rally
Post-Covid momentum witnessed rally on Dalal St that took just 2.5 yrs for market capitalisation of BSE listed companies to hit $4-trn landmark from $3-trn on May 24, 2021
What’s Driving
- 26 of Sensex-30 ending in green
- Mid- & small-caps in focus
- Drop in US bond yields and dollar index
- Emerging Mkts turn attractive
Mumbai: Benchmark Sensex rallied 727 points and Nifty closed above the 20,000 mark on Wednesday driven by buying in heavyweight HDFC Bank, Axis Bank ICICI and TCS on expectations of more foreign fund inflows.
In a remarkable day for Indian equities, the combined market valuation of all listed companies on the BSE reached the $4-trillion milestone for the first time on Wednesday. It took just 2.5 years to hit the $4-trillion landmark after the market capitalisation of BSE listed companies touched the $3-trillion mark on May 24, 2021.
The 30-share BSE Sensex jumped 727.71 points or 1.10 per cent to settle at 66,901.91 with 26 of its components ending in the green and four in the red. The index started the day on a positive note and later zoomed 772.08 points or 1.16 per cent to a high of 66,946.28. The broader Nifty climbed 206.90 points or 1.04 per cent to reclaim the 20,000-mark after a gap of over two months as it ended at 20,096.60 points.
“The market saw incredible upward momentum on Wednesday, Nifty surpassing the 20,000 mark, driven by strong listing gains of ongoing IPOs and dovish statements from US Fed officials, intensifying expectations for early rate cuts. This was demonstrated by the rise in mid- & small-caps and drop in US bond yields and dollar index. Ease in yield is attracting foreign funds to emerging markets,” said Vinod Nair, Head (Research) at Geojit Financial Services. Foreign Institutional Investors (FIIs) bought equities worth Rs783.82 crore, according to exchange data. In the broader market, the BSE mid-cap gauge jumped 0.78 per cent and the small-cap index climbed 0.40 per cent. Among the indices, bankex jumped 1.67 per cent, auto rallied 1.57 per cent, IT (1.33 per cent), financial services (1.28 per cent), teck (1.20 per cent), oil & gas (0.99 per cent) and capital goods (0.89%).
