The market capitalisation of BSE-listed companies jumped to a closing lifetime peak of Rs 414.62 trillion ($4.99 billion) on Tuesday helped by a eight-day rally in benchmark indices, making investors richer by Rs 21.27 trillion. Since March 13, 2024, the market capitalisation of BSE-listed companies increased by Rs 42.46 trillion from Rs 372.17 trillion, the BSE data shows.
“The market capitalisation of companies listed on BSE crossed a record $5 trillion for the first time in intra-day trades on Tuesday – hitting a fresh high on May 21. India became the fifth largest market-cap country after the US, China, Japan, and Hong Kong. Technically, the Nifty has formed a small positive candle on May 21. If the sideways move continues, the Nifty could now face resistance in the 22,578-22,775 band, while 22,198 could offer support in the near-term,” said Deepak Jasani, Head Retail Research, HDFC Securities.
Over the medium-to-long term, however, analysts remain bullish on the road ahead for Indian equities and expect the Sensex and the Nifty to trend higher.
By December 2024-end, Gaurang Shah, senior vice-president at Geojit Financial Services expects the Sensex to hit the 80,000 mark and the Nifty 50 index to scale up to 25,000 levels.
ALSO READ: Sell smallcap, midcap stocks; markets will offer buy-on-dip opportunities: UBS
Thus far in May 2024, FIIs have sold Indian stocks worth Rs 26,061 crore. This ‘selling’ trend, analysts believe, should change post the Lok Sabha election outcome on June 4 if the results are on expected lines. Indian economy, analysts believe, remains on a strong footing, which they feel should keep the equity markets buoyant in the next few years.
“Apart from economic factors, the size of domestic mutual funds and the retail investor base has grown in the last few years – and this is likely to grow more in the years ahead. The FIIs, I feel, would also come back to the Indian stock markets post the outcome of the Lok Sabha elections on June 4,” said G Chokkalingam, founder and head of research at Equinomics Research.
First Published: May 21 2024 | 4:13 PM IST
