BSE-listed companies’ combined market value reaches 11-month peak at ₹465 lakh crore

The cumulative market capitalization of the entire list of companies on the Bombay Stock Exchange has crossed Rs 465 lakh crore and is at an 11-month high.

This rally has been fuelled by a widespread rally and positivity about the revival of India–US trade negotiations, as well as hopes for a US Fed rate cut. The present valuation is just 2.7 per cent short of the all-time high of September 27, 2024, with almost Rs 20 lakh crore being added since the beginning of September.

Hopes of possible easing by the Reserve Bank of India (RBI) in October also boosted investor morale further, as domestic inflation also indicated moderation.

Benchmark indices Sensex and Nifty rose about 3.5 per cent this month, bringing the gap to the all-time highs of September 26, 2024 closer.

State-owned firms dominated the rally recently, taking the BSE PSU Index 7.5 per cent higher, while the BSE 500 gained 5 per cent. Sectoral appreciation was also high: BSE Auto gained 9 per cent, BSE Bankex increased 6.8 per cent, BSE Metal gained 8.1 per cent, and Oil & Gas rose 4.5 per cent.

Mid-cap and small-cap stocks followed this robust performance, with the BSE MidCap index rising 4.7 per cent and the BSE SmallCap rising 6 per cent.

Indian experts opined that the domestic stock market would not be impacted by the US Fed's move. They pointed out that the current upmove is more on the back of hoped-for improvement in Indian corporate earnings.

Market watchers pointed out that corporate revenues in FY27 are likely to increase over 15 per cent, spurred by GST reforms, which may result in a favorable change in FPI sentiment.

Some experts, however, warn that valuations are still high, although earnings momentum is set to pick up, driven by banks, NBFCs, and the consumption industry.

Meanwhile, the Nifty 50 remained firm above the 25,300 mark in the last session, which is indicative of psychological resilience and shows investor ease at higher levels.

Experts explained that the index now looks good for further up move, with resistance expected around the 25,400–25,500 zone, while support is intact at the 25,000–24,900 levels.