Due to significant purchasing activity at Dalal Street on Monday, the combined market capitalization of all BSE-listed companies reached a record high of Rs 400 lakh crore. The major indexes, the BSE Sensex and the NSE's Nifty50 index, both reached fresh highs of 74,673.84 and 22,630.90 for the day, respectively.
The rise was not limited to purchases made on blue-chip counters; larger markets also took part. While the smallcap index was only a few points shy of reaching new all-time highs, the BSE midcap index reached an unprecedented record level of 41,113.16. In just nine months, the BSE's market capitalization increased by Rs 100 lakh billion.
The Indian stock market is optimistic and has been establishing new records on a regular basis, thus FPI selling would be restricted despite the high US bond yields, according to VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "An important trend in FPI activity is the big selling in the FMCG segment and big buying in telecom and realty," he stated.
The BSE Sensex has increased by over 25% over the past year, while the Nifty50 index has increased by almost 30%. The previous year has seen a remarkable run in wider markets, with the BSE midcap and smallcap indexes rising about 67% and 67%, respectively.
The recent Dalal Street debutantes are also included in the market capitalization. More than Rs 67,500 crore was raised through 24 IPOs, including REIT and InvIT offerings, during the 2023–24 fiscal year. The 2023–24 fiscal year saw a 69% increase in the S&P BSE IPO index.
According to market analysts, the present bull run is creating wealth at a rate never seen in India's past, but one should exercise caution due to the secular upswing and high prices.
When the Q4 numbers are released in the following weeks, investors are anticipated to keep a careful eye on developments. Due to increased price realization and volume growth in the premium market, the car industry expects excellent Q4 results. Due to a high base and reduced reservoir level, the commercial vehicle and tractor market continues to be sluggish, according to Vinod Nair, Head of Research at Geojit Financial Services.
But in the medium run, given the subdued quarterly forecasts, it is expected that the global uncertainties that are driving the current corrective trend in the IT industry will continue. Additionally, additional information on the US non-farm payroll and unemployment statistics coming later today will shed light on the Fed's rate trajectory, the speaker added.
Because of the government's emphasis on capital expenditures and the infrastructure sector, the last year has been historic for India's PSU firms. Over the past year, the Nifty PSU Bank has had a 95% increase, while the Nifty PSE Index has more than doubled.
