Market Rally Revs Up Market Valuation: Close to the INR 100 Lakh Crore Mark
Market Rally Revs Up Market Valuation: Close to the INR 100 Lakh Crore Mark
Benchmark BSE Sensex is experiencing what media reports have termed to be a “dream rally”. The associated effect of this is the rise in the total market valuation of BSE listed companies. The market valuation of the BSE listed firms has edged closer to the INR 100 lakh crore mark.
The m-cap or total market capitalisation of the BSE listed firms stands at INR 97,13,196 crore which is close to the 100 lakh crore milestone. In fact, the current m-cap is only 2.86 lakh short of this magic 100 lakh crore mark.
As far as the value in the US dollar terms is concerned, the total market valuation of the BSE listed companies rose to USD 1.58 trillion at the current rupee rate of 61.41 as against the dollar greenback. India has also entered the trillion dollar club in the month of June in 2007, yet moved out in September a year later following an epic financial meltdown.
India rejoined the elite league in the month of May in 2009 a year later again and remained there for some time till it fell in 2012. It recouped somewhat to slip out of the list in August 2013. The BSE Sensex has gained around 6,745.2 points which translates into 31.86% this year.
All time high of the index was recently experienced on Thursday, 6th November 2014 at 28,010.39. Experts indicated that expectations of greater reforms from the Modi government and an RBI rate cut helped to make a positive difference to the market,enabling it to scale new heights.
The Top Companies
Sensex bluechips whose market valuation exceeded 1 lakh crore included RIL, ONGC, TCS, ITC, HDFC Bank, Infosys, Coa India, ICIC Bank, SBI, Sun Pharma, HUL, HDFC, L&T, Bharti Airtel, HCL Tech, NTPC, Wipro, TATA Motors and Axis Bank. TCS is the most valued Indian company presently with a market cap totalling a whopping INR 5,09,435.77 crore.
Smart foreign fund inflows are making a huge difference to the Indian markets. Since the start of the year, overseas investors have injected a net amount of INR 82,226 crore or USD 13.7 billion into equities. They have invested a net INR 1.36 lakh crore in the debt market at USD 22.5 billion causing the total to read INR 2.18 lakh crore.
Recently, the small and mid-cap indices of the BSE rallied by 56% leading to outperformance compared to the larger index. Bullish investor sentiments have been responsible for record foreign fund inflows. Current trends indicate that the market is likely to breach the 100 lakh crore mark when it comes to market valuation of BSE Sensex listed firms.
