India’s MCap Increases By 2x In 18 Months, Escalates To 3.5 Trillion

The strong bull run revives the stress that investors had in late March when global investors were frightened about the economic setbacks due to the Covid-19 pandemic surging to the market. India’s Market Capitalization jumps over 3.5-trillion—almost double from about 1.3-trillion then in March.

Several factors contributed to this record-breaking history in the global market, including India’s post-record 20% GDP growth to June 30. Moreover, the unprecedented amount of funds infused by central banks to review the economy following the covid-19 lockdown, record-low interest rates in nearly all large markets, and investors’ longings to channelize their savings due to lack of investment opportunities during the nationwide lockdown led by the pandemic.

On 6th September, the Sensex jumped 167 points, rallying to 58,297—and scripted history with a record closing of Intra-day high at 58,516. The Nifty also accompanied the market in a record-breaking trajectory and closed at an all-time high of 17,378 points, 54 points up on the day.

However, the Indian benchmarks still lag behind their US competitors. For instance, you can see the consistent number for the S&P 500 Index is 54 times high. In August, the market touched another milestone after the US Fed commented that it was unlikely to hike the interest rates in a hurry. In conclusion, Sensex grabbed nearly 5,000 points, leading India to be the best-performing stock market globally.

What Called Out On The Sudden Rally In The Market?

According to a study by Motilal Oswal Financial Services (MOFSL, the markets are reaching new milestones every day, following solid gains, warm liquidity, and floating sentiments in the county.

“Record gain delivery (in the first quarter of fiscal 2020) has given a hope for a solid FY22 with an estimated 30%+ Nifty gains, on the back of a strong 15% earning delivery in FY21,” it acclaimed.

  • ICICI Bank stock has been following the peak for the last five days, leading to the bank’s shares crossing the 5-trillion mark today.
  • The lender finally lists among the most valued companies on the Nifty top 50 indexes.

Joining the list of top companies with higher MCap — Reliance Industries, Tata Consultancy Services, and Infosys, ICICI becomes the second lender after HDFC in this sudden boost.

In the future, management commentaries across the Sensex Board nod to improved demand in the environment, following ease of lockdown restrictions, lower active cases, and a boost in vaccination.

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