On a day when each the Sensex and Nifty scaled fresh all-time peaks, the mixed market capitalisation of all listed shares on BSE hit the Rs 400 lakh crore milestone for the primary time ever on Monday. With retail buyers shifting their financial savings from conventional funding avenues, BSE’s m-cap has seen a progress of Rs 100 lakh crore in simply 9 months.The Rs 300 lakh crore mark was touched on 5 July 2023 when Nifty was at 19,400-level. Since then the index is up over 16% and scaled a contemporary peak of twenty-two,623.90. The rally has been a lot sharper in smaller shares with tons of of small and midcap shares giving multibagger returns.

The Rs 100 lakh crore achieve within the final 9 months additionally contains the affect of many new listings like IPOs, FPO or another type of fairness fundraising however many of the positive factors have been led by the sheer rise in share costs.

India’s market cap crossed the Rs 50 lakh crore mark in 2007, Rs 100 lakh crore milestone in 2014, and the Rs 200 lakh crore mark in February 2021.

In phrases of wealth creation, the continuing bull run is unprecedented in India’s historical past.

In the final one yr, PSU shares have been one of many largest outperformers with buyers banking on ‘Modi ki Gaurantee’, govt’s capex push and turnaround story. Both Nifty PSE index and Nifty CPSE have greater than doubled in 12 months. Nifty PSU Bank can also be up about 95%.

The Nifty Microcap 250 index has rallied practically 93%, Nifty Smallcap100 80% and Nifty Midcap100 66%.

Going ahead, central financial institution charge actions, consequence of the Lok Sabha elections, US presidential election and earnings season could be the most important triggers for inventory costs.

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“It is important to understand that macroeconomic expectations are changing fast. This year began with market expectations of seven rate cuts by the Fed in 2024. Then it came down to three and now many believe that the Fed may cut only twice this year. The strength of the US economy and labour market has surprised the majority of experts and market participants. Despite the scaling down of rate cut expectations the mother market continues to be buoyant, setting new records. This will provide the global support for equity markets like India,” stated Dr. V Okay Vijayakumar of Geojit Financial Services.India’s capital markets have witnessed vibrant participation from home retail savers, with demat accounts surging to 151 million in March 2024 from 36 million in March 2019. Cumulative home fairness inflows have amounted to $92.7 billion over the past 5 years

“India Inc. has raised $92.9 billion through primary markets over the last five years. India now boasts a unique combination of ‘size and growth’. India’s GDP is likely to exceed $4 trillion in FY25/26 and $8 trillion by FY34,” Motilal Oswal stated.

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