Companies listed at Bombay Stock Exchange are now valued over $4tr
Business
IT companies led the charge on Wednesday with a 1.5pc surge
MUMBAI (Web Desk) – The Indian stocks reached a new landmark on Wednesday after the market value of companies listed on the Bombay Stock Exchange (BSE) crossed $4 trillion as market continues witnessed a sustained rally.
According to the latest data, the total market cap stood at hit $4.01tr, representing an over $600 billion increase this year, as the information technology (IT) stocks, after dovish commentary from a US Federal Reserve official elevated bets of rate cuts by as early as March 2024.
Earlier, a Reuters poll of economists suggested that India's economic expansion likely moderated but remained strong in the September quarter, supported by robust service activity and solid urban demand despite a global slowdown dampening export growth.
Read more: India to remain fastest-growing major economy but with uneven urban, rural demand: Reuters poll
Gross domestic product (GDP) growth is forecast to have slowed to 6.8 per cent in the July-September quarter from 7.8pc in the previous quarter, according to the median forecast of 55 economists polled from Nov 17-27.
On Wednesday, the NSE Nifty 50 Index rose 0.60pct to 20,008.45 points, reclaiming the 20,000 mark for the first time since Sept 20, 2023. The S&P BSE Sensex was up 0.59pc at 66,560.50, as of 10:10 am IST.
IT companies, which earn a significant share of their revenue from the US, rose 1.5pc after Fed Governor Christopher Waller flagged the possibility of lowering the interest rate in the months ahead if inflation continued to come down.
The odds of a 25 basis-point rate cut by March 2024 rose to 40.4pc on Wednesday from 21.5pc the day before, according to the FedWatch tool.
"Sentiment continues to be positive for Indian equities," said Anita Gandhi, founder and head of institution, Arihant Capital, citing the easing global rate outlook, return of foreign inflows and the recovery in rural demand.
Foreign portfolio investors have turned net buyers of Indian equities after two months, adding shares worth 29.01 billion rupees, as of Nov 28.
"The updates from the Supreme Court hearing on the Adani conglomerate have also given a boost to Adani stocks, aiding positive sentiment," Gandhi added.
Adani group stocks rose between 0.4pc and 17pc on the day, extending the rally from Tuesday's session.
Zomato jumped 4pc after about 8.66 million shares of the food delivery company changed hands in 12 blocks as of 9:47am IST, according to LSEG data.
Aster DM Healthcare jumped 11pc after agreeing to sell a majority stake in its Gulf business to Alpha GCC Holdings for $1.01bn.
The BSE-listed firms achieved a $1tr market cap milestone in May 2007. It took over 10 years to double that, despite numerous new companies joining the exchanges. The market cap surpassed $2tr in July 2017 and $3tr in May 2021.
India also received positive sentiment boosts from recent upgrades by global brokerages, strong earnings for the second quarter, and a fall in crude oil. Investors are awaiting India GDP for Q2 and election exit poll results for five states, voting of which completed recently, on November 30. The final election results will be declared on December 3.
