Following a robust increase in metal, electricity, and Central Public Sector Enterprises (CPSE) stock prices on Tuesday, the overall market capitalization (market-cap) of BSE-listed businesses crossed the $5 trillion threshold for the first time in intraday trading.
Due to an eight-day rise in benchmark indexes, the market capitalization of BSE-listed businesses surged to a closing lifetime top of Rs 414.62 trillion on Tuesday, resulting in a Rs 21.27 trillion gain for investors. According to BSE statistics, from March 13, 2024, the market capitalization of businesses listed on the BSE has risen from Rs 372.17 trillion to Rs 42.46 trillion.
"In intraday exchanges on Tuesday, the market capitalization of businesses listed on the BSE broke the $5 trillion barrier for the first time, reaching a new high on May 21. India overtook the US, China, Japan, and Hong Kong as the country with the fifth-largest market capitalization. From a technical perspective, on May 21, the Nifty created a modest positive candle. The Nifty may potentially encounter resistance around the 22,578–22,775 area if the downwards trend persists, while 22,198 may provide support in the short term, according to Deepak Jasani, Head of Retail Research at HDFC Securities. Analysts, however, are still positive about the medium-to-long term outlook for Indian stocks and predict more increases in the Sensex and Nifty.
According to Gaurang Shah, Senior Vice-president of Geojit Financial Services, the Nifty 50 index would rise to 25,000 levels and the Sensex will reach 80,000 by the end of December 2024.
"There may be some short-term volatility following the election results. But, the markets will witness greater gains after June 4 if the election results are as predicted. Aside from that, the IMD has forecast a typical monsoon, which is encouraging for correlated industries and equities. Additionally, this may control inflation and boost investor confidence," he said.
FIIs had sold Indian equities for a total of Rs 26,061 crore as of May 2024. Analysts think that if the outcomes of the Lok Sabha election on June 4 are as predicted, this "selling" tendency would reverse. Analysts predict that the Indian economy will continue to grow and that this would keep the equities markets rising over the next years.
"In addition to economic considerations, domestic mutual fund assets and the number of retail investors have increased recently, and this trend is probably going to continue in the years to come."I believe that the FIIs will return to the Indian stock markets following the results of the Lok Sabha elections on June 4," stated G Chokkalingam, Equinomics Research's Founder and Head of Research.
