Market Cap Of BSE Companies At Record High Of Rs 291.89 Lakh Crore: Report

There has been growth of nearly 4 per cent in market capitalization, so far this year. The previous highest market capitalization was recorded at Rs 291.30 lakh crore on December 14, 2022

The market's gains follow improvements in macro-economic factors, better-than-expected March quarter earnings, stable commodity prices, and expectations of pause in interest rate hikes.

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The market valuation of all listed firms on the BSE reached a record high of Rs 291.89 lakh crore on June 15, reported MoneyControl. The report cited Bloomberg data saying that the total market capitalization of these listed companies has increased by 16 per cent in both rupee and dollar terms since March 28. There has been growth of nearly 4 per cent in market capitalization, both in dollar and rupee terms, so far this year, according to the report.

The previous highest market capitalization was recorded at Rs 291.30 lakh crore on December 14, 2022. This was despite both Sensex and Nifty trading around 0.6 per cent and 0.4 per cent away from their all-time highs, respectively. Sensex hit an all-time high of 63,191.86 while Nifty touched a record high of 18,812.50 on December 1, 2022, the report said. 

So far this year both Sensex and Nifty rose around 3.5 per cent while since March 28 they have gained nearly 10 per cent each.

According to the report, the market's gains follow improvements in macroeconomic factors, better-than-expected March quarter earnings, stable commodity prices, expectations of a prolonged pause in interest rate hikes by the Reserve Bank of India (RBI), and continued foreign investor buying.

Additionally, it said that during this period, investors were also cautious about the potential for further interest rate hikes in the United States due to recent hawkish comments from the US Federal Reserve. The Federal Reserve, while announcing a temporary halt to its series of interest rate hikes on Wednesday, expressed the likelihood of implementing additional rate increases later in the year.

This cautious stance from the US Fed prompted investors to carefully consider the prospects of future interest rate hikes and their potential impact on global markets, the report said. 

The report also noted the positive outlooks of analysts and brokerages.  James Cheo, HSBC's Chief Investment Officer for Southeast Asia, Global Private Banking and Wealth, highlights in its recent report on India's strengthening economic momentum. As per the report, He said that India exhibits robust economic and earnings growth, outperforming many Asian counterparts. Strong recovery indicators like PMI and robust consumer rebound reflected in GST collections indicate a revival in manufacturing, high-skilled exports, and services. 

Morgan Stanley also said that the Sensex could reach 68,500 by December, the report said.  The brokerage expects the index to trade at a trailing price-to-earnings multiple of 20.5 times, slightly above the 25-year average of 20 times. According to Morgan Stanley, this premium reflects increased confidence in medium-term growth prospects.

Goldman Sachs, on the other hand, has set a target of 20,000 for the Nifty by the end of March, indicating a 7 per cent upside from current market levels. The brokerage firm believes that a rebound in Chinese equities is unlikely to significantly divert funds away from India. It emphasizes that India's robust fundamentals will continue to attract long-term investors, supporting the market's momentum, the report said.