For the first time ever, the total market capitalization of all companies listed on the Bombay Stock Exchange (BSE) has exceeded $5.5 trillion. This milestone represents a significant 22.6 percent increase from $4.2 trillion at the start of the year, bolstered by strong gains in the Sensex and broader markets, including the BSE MidCap and SmallCap indices. The Sensex has risen by 13 percent this year, while the BSE MidCap and SmallCap indices have surged over 30 percent each.
The positives that worked their way up in this market rally were hopes of a comeback by the Bharatiya Janata Party-led government, upbeat global markets, resurrection of foreign portfolio investors, and of course, a positive budget announcement. Added to it was continuous buying by domestic investors on hopes of good economic growth, stability in policy, and favorable monsoon conditions.
However, high valuations and mixed earnings for the June quarter keep some analysts cautious. Net profits of Nifty 50 companies rose just 0.7 percent on-year in Q1FY25, driven by sluggish volume growth along with moderate compression in margins. The market seems to respond well to companies that have slightly beaten earnings expectations but tends to overlook larger disappointments—indicative of a very selective investment strategy. A recent Kotak note has pointed out that the sharp price increases in recent times, particularly at the lagging-end sectors, make stock-picking a tougher ask for investors.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
