In a first, market cap of BSE-listed firms hit $3 trillion
Premium- The 30-share Sensex reclaimed the 50,000 mark on Friday, gaining over 2%. The Nifty rose 1.78%. The rally has been broad-based and supported by non-index stocks as well
MUMBAI: Market valuation of all listed firms on the BSE touched $3 trillion for the first time on Friday, led by gains in mid-caps and small-caps.
Even as the aggregate market value has hit a new record, benchmark indices, which represent the top stocks by market cap, are still over 3% below their all-time highs recorded in February.
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The 30-share Sensex reclaimed 50,000 mark on Friday with gaining over 2%. The Sensex gained 1005 points, or 2.04%, to 50,569. The Nifty index rose 1.78% to 15,177.75.
The rally has been broad-based and supported by non-index stocks too. From their 52 week lows, BSE MidCap has advanced 92%, BSE SmallCap 121% and BSE 500 has risen 75%. Both Sensex and Nifty are up over 65%.
With this, India has become the eighth country to achieve the milestone, following in the footsteps of US, China, Hong Kong, Japan, UK, France, and Canada.
"Benchmark indices witnessed sharp run-up this week despite selling pressure seen in last two days as daily caseload in the second wave continued to remain below 3 lakh despite an increase in testing, which offered comfort and may result in the lifting of ongoing state-level lockdowns sooner", said Binod Modi, Head Strategy at Reliance Securities.
"Further, assumption of the second wave of covid-19 to peak-out by the end of May or mid-June holds true and adverse impact of second-wave should not be felt beyond 1QFY22. Investors will continue to focus on the trajectory of daily caseload and vaccination ramp up in the country in the near term", Modi added.
Analysts are keenly tracking the decline in covid cases and the pace of vaccination. With the expectation of having enough vaccine doses by mid-June, analysts believe that a rapid vaccination programme will boost economic recovery.
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