Mumbai: The combined market capitalisation of all companies listed on the BSE crossed the USD 5 trillion mark on Wednesday, reaching its highest level in nearly six weeks.
The milestone comes after a strong rally in Indian equities over the past few trading sessions. Improved investor sentiment, easing geopolitical tensions and falling crude oil prices helped lift markets higher.
The total market value of BSE-listed firms has increased by more than 6 percent in the last four trading sessions, reflecting growing optimism among investors.
Lower Oil Prices Improve Sentiment
Market experts said the recent decline in crude oil prices has played a major role in improving sentiment.
Concerns over disruptions in global oil supplies have eased following developments related to the proposed US-Iran peace agreement. As a result, crude prices have fallen sharply from recent highs.
Lower oil prices are positive for India because they help reduce inflationary pressures, improve the current account balance and lower costs for businesses.
Analysts also noted that volatility in financial markets has declined, encouraging investors to increase their exposure to equities.
Broader Market Leads the Rally
The ongoing recovery is not limited to large-cap stocks.
Mid-cap, small-cap and micro-cap stocks have performed better than benchmark indices in recent weeks, indicating broader participation in the market rally.
While the Sensex has recorded steady gains since April, broader market indices have delivered stronger returns, showing increased interest across different sectors.
Domestic Investors Provide Strong Support
Despite continued selling by foreign institutional investors (FIIs), Indian markets have remained resilient.
Analysts attribute this strength to consistent inflows from domestic investors through mutual funds and other investment channels.
They believe any improvement in foreign fund flows could provide additional support to markets in the coming months.
Sensex, Nifty Trade Higher
On Wednesday, the Sensex rose more than 400 points, or about 0.53 percent, to touch 77,219. The Nifty gained more than 100 points, or 0.50 percent, to trade above 24,100.
Experts expect sectors such as banking, telecom and information technology to lead the next phase of the market recovery.
