BSE company market valuation hits new all-time high thanks to recent bull run

Recent bull run pushes BSE company stock market valuation to new all-time high

Market capitalization of BSE-listed companies hits new all-time high

New Delhi:

The total market capitalization of BSE-listed companies hit a record high of Rs 280.50 lakh crore, buoyed by the latest bull run in Indian stocks boosted by a return of foreign investors to domestic capital markets.

Following the recent rally in shares, the market capitalization of BSE-listed companies reached a new high of Rs 2,80,52,760.91 crore on Thursday. Earlier on January 17, the market capitalization (m-cap) of BSE-listed companies hit a lifetime high of Rs 2,80,02,437.71 crore.

India’s equity benchmarks extended their bull run for the fifth consecutive week, with the Sensex and Nifty indexes ending Thursday at a more than four-month high.

The 30-stock BSE Sensex ended up 37.87 points or 0.06% at 60,298, marking the benchmark’s fifth consecutive session of gains, and the broader NSE Nifty climbed 12.25 points, or 0.07%, at 17,956.50.

The two benchmark exchanges have recouped all losses suffered in 2022 due to gains of almost 11% over the past four weeks, with Indian stocks posting their best week since February at the end of last month.

The broader NSE Nifty 50 index hit a four-month high in the previous session and extended that winning streak to an eighth straight day.

“Recent gains in Indian indices have been helped by a combination of factors including encouraging macro data, falling commodity prices, slowing inflation which may lead central banks to broadly ease monetary policy sooner. than expected, etc. The return of buying by REITs has also helped,” Dhiraj Relli, MD and CEO, HDFC Securities, told PTI on BSE’s market cap hitting a new all-time high.

On Thursday, domestic stocks defied a broad global sell-off trend as strong capital inflows continued to boost Indian stocks.

“We are into the fifth consecutive week of early and rotating buying across all sectors, helping the index maintain the prevailing trend,” Ajit Mishra, VP – Research, Religare Broking Ltd, told PTI.

Twenty-two of the 43 companies listed on the Nifty 50 index beat analysts’ earnings expectations in the June quarter, according to Reuters, which cited data from Refinitiv Eikon. By Friday, almost all Indian companies had released their earnings reports.

Analysts anticipate an improvement in the second half of the year for Indian companies, driven by a drop in commodity prices which will relieve pressure on margins.

Foreign capital inflows have helped boost the domestic market.

Until early July, Foreign Portfolio Investors (REITs) were constantly selling stocks in Indian markets for about nine to ten months for various reasons including monetary policy tightening in advanced economies, growing demand for dollars and the high yields of the United States. obligations.

They have withdrawn Rs 171,345 crore from shares so far in 2022, according to NSDL data.

Meanwhile, the benchmarks – Sensex and Nifty – are up nearly 10-11% during the current rally on a cumulative basis, largely recouping all of the losses incurred so far in 2022. Shares’ latest rally has enriched Indian investors with over Rs 25 trillion.

In July, however, they were the net buyer with a total purchase of shares worth Rs 4,989 crore. So far in August, data showed that they bought shares worth an additional Rs 41,024 crore.

The benchmark Sensex broke the psychologically crucial 60,000 mark on Wednesday after more than four months, and the Nifty index is heading towards the 18,000 mark.

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