Indian stock market hits historic milestone with Rs 400 trillion market capitalisation

In a significant milestone, the total market capitalisation (mcap) of all companies listed on the BSE surged past the Rs 400 trillion mark. This achievement comes amid a remarkable resurgence in the shares of smallcap companies, with the Nifty Smallcap 100 index witnessing an impressive rally of over 12% during its uninterrupted 12-session gaining streak. Currently, the index is on the verge of touching a new high, being less than a percent away.

Simultaneously, the benchmark Sensex indices continued their upward trajectory, marking fresh record highs for the third consecutive day. The Sensex closed the session with a gain of 494 points at 74,743, while the Nifty settled 153 points higher at 22,666.

This milestone reflects the robust performance of the Indian stock market, fueled by strong domestic macroeconomic indicators and steady inflows. Market analysts attribute this uptrend to vibrant participation from domestic retail investors, driven by India’s promising economic outlook. Ajay Menon, Managing Director and CEO of the broking division at Motilal Oswal Financial Services, emphasized India’s unique blend of ‘size and growth,’ with GDP projected to surpass $4 trillion by FY25/26 and reach $8 trillion by FY34.

As the Indian equity market continues its upward trajectory, investors are optimistic about reaching the next significant milestone of achieving a $5 trillion market capitalisation, which is less than 4% away.