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  1. Sustained stock market rally takes India to elite $2 trillion club

Sustained stock market rally takes India to elite $2 trillion club

Despite a heavy selling by the FIIs (foreign institutional investors) since last two months, Indian equities have managed to hold the momentum and extended gains to hit further record highs. Indian stock market is now in the $2 trillion market cap club.

By: | Updated: October 26, 2017 11:38 AM
The key equity indices Sensex and Nifty have returned about 24-25% so far in 2017. (Image: Wikimedia Commons)

Indian stock markets have been rallying since the beginning of this year right after the plunge due to demonetisation in November-December period of 2016. This year has emerged as a thrilling one for investors with domestic markets reaching the new highs. Yesterday only, the benchmark Sensex crossed 33,000-level for the first time in a massive upmove after Narendra Modi government announced a mega plan of Rs 2.11 lakh crore to recapitalise the stressed PSU banks.

Earlier in July, the broader Nifty index breached the five-digit figure of 10,000 and made an all-time high of 10,340 yesterday. The IPO (initial public offering) market has also been a hit this year with bigger public offers such as GIC’s Rs 11,370 crore and SBI Life’s Rs 8,400 crore. Collectively, about Rs 50,000 crore has been raised so far from the share sales.

Indian stock market is now in the $2 trillion market cap club with the companies such as Reliance Industries — market cap leader, Tata Consultancy Services — India’s largest IT company, HDFC Bank — India’s largest private sector bank, ITC — India’s largest FMCG company, and State bank of India featuring in the top five slot. According to Wednesday’s close, the total market capitalisation of all of the BSE listed companies was at $2.18 trillion.

The list also includes Hindustan Unilever, HDFC — India’s largest housing mortgage financier, Maruti Suzuki (India) — India’s biggest car-maker, ONGC and Infosys — India’s second-largest IT company, Bharti Airtel — India’s largest telecom operator, Indian Oil Corporation — India’s biggest company by earnings, ICICI Bank, Kotak Mahindra Bank and Coal India — the largest coal manufacturer in world.

Despite a heavy selling by the FIIs (foreign institutional investors) since last two months, Indian equities have managed to hold the momentum and extended gains to hit further record highs. The key equity indices Sensex and Nifty have returned about 24-25% so far in 2017. Shares of India’s largest bank by asset size and loan book State Bank of India hit a 52-week high, zoomed nearly 30% in the intraday trade on Wednesday.

SBI surpassed four companies — Hindustan Unilever, HDFC, Maruti Suzuki and ONGC — and became the fifth largest company by market capitalisation on Wednesday. With appreciation in the stock prices led by the mega boost of Rs 2.11 lakh crore to recapitalise the PSU banks, SBI added Rs 60,596.99 crore in the market capitalisation to Rs 2,80,282.68 crore, as compared to Rs 2,19,685.69 crore at Tuesday’s close. The stock of SBI jumped as much as 29.93% to hit the 52-week high of Rs 328.05 before closing up 26.92% at Rs 322.95. With the fifth spot, SBI is now behind ITC, HDFC Bank, TCS and Reliance Industries in the market capitalisation.

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