Market capitalisation of NSE-listed companies touches $5 trillion

Just two days after the market cap of BSE-listed companies touched the milestone of USD 5 trillion, the market capitalisation of companies listed on NSE too reached a similar level on Thursday.
Market capitalisation or market cap is the total value of a company's stock, derived at by multiplying the stock price by the number of its outstanding shares.

The journey of the market capitalization of Indian listed companies on the NSE from USD 2 trillion (July 2017) to USD 3 trillion (May 2021) took about 46 months, USD 3 trillion to USD 4 trillion (December 2023) took about 30 months and the latest USD 1 trillion addition took just six months, the exchange said today

The top five companies by market capitalisation are Reliance Industries Limited, Tata Consultancy Services Limited, HDFC Bank Limited, ICICI Bank Limited, and Bharti Airtel Limited, as per NSE.
As per NSE, the growth in market capitalization is not restricted to the top companies but is observed across stocks.

Ongoing rally in the Indian stock markets helped in reaching this feat. The consistent bull run in Indian stock indices - Sensex and Nifty -- continued through Thursday, and touched fresh highs yet again, reacting to Prime Minister Narendra Modi's assertion that the BJP-led alliance is on track to form the government for a record third term.

Sensex today jumped about 1,200 points and crossed 75,000 for the first time.

Barring a little volatility, Indian stock indices have been firm over the past several sessions, supported by strong support from a majority of sectoral indices. With the five phases of elections now behind us, it is widely expected by investors that the Narendra Modi-led government will come back to office with a comfortable margin for his third term. This also likely triggered fresh stock buying.

Softer-than-expected US consumer inflation in April, and a consistent moderation in inflation in India and the sooner-than-normal arrival of the southwest monsoon in India, as predicted by IMD, mainly buoyed Indian stocks lately. The southwest monsoon is likely to hit Kerala on May 31, a day before the usual normal date of June 1.

Last week, Sensex jumped about 2,000 points, on a cumulative basis. During Tuesday-Thursday this week, Sensex jumped over 1,500 points. On Monday, i.e., yesterday, the stock exchanges were shut for General Elections in Mumbai.

Firm GDP growth forecasts with the country set to remain the fastest growing major economy, inflation at manageable levels, political stability at the central government level, and appreciable central bank monetary policy, have all contributed to painting a bright picture for the Indian economy in recent quarters.

Overseas investors have been remaining net sellers of Indian equities for the past several sessions. Interestingly, domestic institutional investors during the same period stayed net buyers, largely making up for the outflows by the foreign investors.

Investors become richer by Rs 4.28 lakh cr; market cap of BSE-listed firms hits new peak

Investors' wealth on Thursday went up by Rs 4.28 lakh crore amid the ongoing optimistic trend in equities where the benchmark Sensex hit its lifetime peak.

The 30-share BSE Sensex regained the 75,000 level in intra-day trade on Thursday. It climbed 1,196.98 points or 1.61 per cent to settle at a new closing peak of 75,418.04. During the day, the Sensex zoomed 1,278.85 points or 1.72 per cent to reach the intra-day high of 75,499.91.

The NSE Nifty went up by 369.85 points or 1.64 per cent to settle at 22,967.65. It jumped 395.8 points or 1.75 per cent to 22,993.60 -- the barometer's record intra-day high.

Investors' wealth went up by Rs 4,28,602.18 crore with the market capitalisation of BSE-listed companies reaching an all-time high of Rs 4,20,22,635.90 crore (USD 5.05 trillion).

"Markets ended at fresh all-time high amid short-covering, improving investors' sentiment towards the election outcome and healthy macros highlighted by the record dividend payout by RBI," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Market-cap of BSE-listed companies too crossed USD 5 trillion making India the 5th country to reach this milestone, he added.

The combined market capitalisation of BSE-listed companies hit the historic USD 5 trillion-mark for the first time at the close of trade on Wednesday.

The Reserve Bank of India will pay a record Rs 2.1 lakh crore dividend to the government for the fiscal ended March 2024, more than double of budgeted expectation, helping shore up revenue ahead of a new government taking office.

The RBI board, at its 608th meeting on Wednesday, approved the transfer of surplus, the central bank said in a statement.

The combined market valuation of all listed companies on the BSE reached the USD 4 trillion milestone for the first time ever on November 29 last year.

The market capitalisation of listed companies on the NSE also hit the USD 5 trillion-mark at the close of trade on Thursday.

Among the Sensex firms, Mahindra & Mahindra, Larsen & Toubro, Axis Bank, Maruti, UltraTech Cement, IndusInd Bank, HDFC Bank, Bharti Airtel, ICICI Bank, Titan, Tata Consultancy Services and Reliance Industries were the major gainers.

Sun Pharma, PowerGrid and NTPC were the laggards.

In the broader market, the BSE midcap gauge climbed 0.58 per cent and smallcap index went up by 0.27 per cent.

Among the indices, auto climbed 2.28 per cent, capital goods by 2.13 per cent, bankex by 1.98 per cent, financial services by 1.64 per cent, services by 1.63 per cent, teck by 1.42 per cent, consumer discretionary by 1.19 per cent and IT by 1.18 per cent.

With agency inputs