Record highs! BSE market capitalisation at Rs 218.14 lakh crore

Despite the benchmark index Sensex quoting 3.8% or 1,976 points below its highs, the market capitalisation of all companies listed on BSE stood at an all-time high of Rs 218.14 lakh crore or 3 trillion dollars. Unlike the past, the current rally is not polarized to a particular sector or particular cap of stocks rather is fuelled by a rally in small and mid-cap stocks led by stellar Q4 earning performance.

On a year to date basis for the calendar year 2021, the exchange has added over Rs 30 lakh crore. Whereas in the financial year 2021-22 investor wealth grew by almost Rs 14 lakh crore and in the month of May so far the market capitalization jumped by Rs 11.11 lakh crore with the current week contributing Rs 7.53 lakh crore. This has been possible on the back of easing Covid concerns, robust Q4 earnings season, favourable global cues and on hopes of lifting lockdown restrictions.

Expert view

“The new daily covid cases which remained below the 3L mark for the fifth day in a row, kept the sentiments buoyant as it raised hopes of the lifting of lockdown soon. Thus the overall structure of the market remains positive from the long term perspective,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Retail investors

BSE’s record market capitalisation comes at a time when the share of individual investors in the market turnover has gone to almost 45%. In contrast foreign institutional investors (FII) turning net seller and have pulled out $1.29 billion worth of domestic securities in April, the highest since March 2020, according to domestic brokerage and research firm Edelweiss Securities. 

Meanwhile, the volatility gauge India VIX of NSE, which measures how much volatility investors anticipate in the next 30 days, continued its downward spiral, ended 3% at 19.05 levels.