This year, investors have become richer by ₹110.57 lakh crore due to a strong rally in the stock market. The market value of companies listed on the Bombay Stock Exchange (BSE) has jumped to ₹4,74,86,463.65 crore (around $5.67 trillion). On September 27, the total market value reached a record high of ₹477.93 lakh crore.
So far in 2024, the BSE Sensex has risen by 12,026.03 points, or 16.64%, providing great returns to investors. The index hit an all-time high of 85,978.25 points on September 27.
Analysts believe this market surge is due to strong domestic liquidity and solid economic fundamentals in India. Santosh Meena, Head of Research at Swastika Investmart, noted that mutual funds have seen record inflows, boosting market confidence.
Despite some selling from Foreign Institutional Investors (FIIs), the Indian stock market has thrived, especially in midcap and smallcap segments, rewarding retail investors. The BSE midcap index rose by 12,645.24 points (34.32%) this year, while the smallcap index increased by 14,777.09 points (34.62%).
The recent market rally was partly driven by hopes for interest rate cuts from the U.S. Federal Reserve and the Reserve Bank of India (RBI). Global markets have also remained supportive, despite geopolitical tensions, with low crude oil prices helping reduce inflation in India.
In 2023, the BSE benchmark rose by 11,399.52 points, adding ₹81.90 lakh crore to investor wealth. The market capitalisation crossed the $4 trillion mark for the first time on November 29 last year and hit $5 trillion on May 21 this year.
Reliance Industries leads the market with a valuation of ₹19,82,265.88 crore, followed by TCS, HDFC Bank, Bharti Airtel, and ICICI Bank.
Looking ahead, Meena cautioned that the market might face some corrections as the U.S. elections approach and geopolitical issues persist. However, he remains optimistic about finding opportunities in specific sectors and stocks due to strong domestic liquidity.
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