Mumbai, July 7 (SocialNews.XYZ) The market capitalisation (mcap) of all listed companies on the BSE has hit a record high in rupee terms, driven by the sustained rally in stock markets, strong gains in broader markets, easing geopolitical tensions, softer crude oil prices and renewed foreign institutional investor (FII) buying.
As of Monday's close, the combined market capitalisation of all BSE-listed companies stood at a record Rs 482.31 lakh crore, up 17 per cent since the beginning of April.
The previous record was set on January 2.
BSE 250 Microcap Index has emerged as the strongest performer, hitting a record high on July 2 after surging more than 32 per cent since the start of April.
According to analysts, the performance suggests the rally since April has been broad-based rather than concentrated in a handful of large-cap stocks.
Investor sentiment also received a boost from measures taken by the government and the Reserve Bank of India (RBI) to encourage foreign investment, including initiatives to exempt capital gains tax on foreign investments in government securities and allow direct participation by the global Indian diaspora.
According to market experts, there are clear signs of an uptrend in the market as two major headwinds -- elevated crude oil prices and sustained foreign portfolio investor (FPI) selling -- have reversed.
They noted that crude prices have retreated to pre-conflict levels, while FPIs have turned net buyers, marking a significant shift in market sentiment that is likely to continue, supported by strong fundamentals.
Robust auto retail sales in June reflected the economy's growth momentum, while lower crude prices are expected to keep inflation under control and enable the RBI to maintain a low interest rate environment, the experts said.
Despite the record mcap, the benchmarks and broader indices are yet to reclaim their respective record highs in rupee terms.
Since the beginning of April, Sensex and Nifty have gained nearly 8 per cent, but remain 8.8 per cent and 7.2 per cent, respectively, below their record highs touched on January 2.
Source: IANS
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