According to the data from BSE, the total market capitalization of all BSE listed companies stood at Rs 292.12 lakh crore during the session on Thursday.
The total market capitalization of all the listed companies on BSE hit an all-time high of Rs 292 lakh crore on Thursday the second-rung counter fueled the rally. The broader market gauges, BSE midcap and BSE smallcap indices, hit their 52-week high during the session, pushing the overall valuations of markets to new highs in domestic currency terms.
According to the data from BSE, the total market capitalization of all BSE-listed companies stood at Rs 292.12 lakh crore during the session on Thursday. Prior to this, BSE’s all-time mcap had hit Rs 291.25 lakh crore mark on December 1, 2023, when the benchmark index Sensex had hit its 52-week high.
On Thursday, BSE midcap and smallcap indices surged about a per cent each to hit their 52-week highs at 28,215.13 and 32,190.2, respectively. Both their broader market barometers have gained about 20 per cent in the last three months, while their monthly gains have been up to 8 per cent.
According to the market experts, a combination of factors including controlled inflation, pause in the interest rate hikes, reasonable valuations, FIIs buying, capital expenditure cycle pickup and reasonable valuations have been pushing the market higher in the last few months.
AK Prabhakar, Head of Research at IDBI Capital said that after a pause in interest rates by the RBI, the government’s push for infra development and in terms of PLI scheme has triggered the ‘Make in India’ have mainly led to the rally in Indian broader markets. Also, the private capital expenditure (capex) and China plus one policy are also aiding sentiments for the broader markets.
Echoing a similar notion, Divam Sharma- Founder of Green Portfolio PMS said that the interest rate pauses by RBI and the US Fed attracted overseas investment into Indian equities. “Other economic indicators including inflation, IIP numbers, India Inc results were the other key factors leading to the high demand of Dalal Street equities as India presented better opportunities.”
According to the data from NSDL, foreign investors have remained buyers of Indian equities since March 2023. After pulling out a total of Rs 34,146 in January and February this year, FPIs have poured in about Rs 74,666 crore between March 1 and June 14, 2023. The net FPI investment in Indian equities in calendar 2023 stood at Rs 40,520 crore as of Wednesday.
BSE Sensex was slightly below its 52-week high at 63,583.07 as it scaled 63,310.96 on Thursday before giving up its gains partially. The US Fed paused interest rates on Wednesday but with a hawkish tone suggesting two hikes were possible by the end of 2023 which dented market sentiments.
Even on the technical front, the broader markets look ripe for some more gains from the current levels. Ajit Mishra, SVP – Technical Research, Religare Broking said Russell 2000 index and S&P 500 index have recovered sharply and are holding near their record highs and the Indian market is following suit.
Dow Jones has not hit new 52-week highs like Indian benchmark indices, Mishra said drawing the correction between Indian and US stocks. “Technically, smallcap stocks may rise as the Nifty smallcap 11 index is more than 11 per cent below its record highs, leaving room for more potential,” he said.
Indian economy appears to be more resilient and better shaped; analysts are of the view that investors should focus on domestic themes. They believe that the party in the broader markets is not over, rather it has just started but investors should be cautious and cherry-pick the stocks.
“There is much more juice left in the midcaps and smallcap stocks. However, Some corrections in these segments shall not be ruled out, which should be utilized to buy the dips. One can focus on PLI-linked and non-commodity sectors such as speciality chemicals, textiles, auto ancialiary, capital goods and pharma,” said Sharma from Green Portfolio.
Reconciling similar views Prabhakar from IDBI Capital said that midcap and smallcap continue to remain attractive and with more liquidity coming in, there is a potential of more upside in these segments. “It is a golden decade for India with more potential in these stocks,” he added.
According to the data from BSE, the total market capitalization of all BSE-listed companies stood at Rs 292.12 lakh crore during the session on Thursday. Prior to this, BSE’s all-time mcap had hit Rs 291.25 lakh crore mark on December 1, 2023, when the benchmark index Sensex had hit its 52-week high.
On Thursday, BSE midcap and smallcap indices surged about a per cent each to hit their 52-week highs at 28,215.13 and 32,190.2, respectively. Both their broader market barometers have gained about 20 per cent in the last three months, while their monthly gains have been up to 8 per cent.
According to the market experts, a combination of factors including controlled inflation, pause in the interest rate hikes, reasonable valuations, FIIs buying, capital expenditure cycle pickup and reasonable valuations have been pushing the market higher in the last few months.
AK Prabhakar, Head of Research at IDBI Capital said that after a pause in interest rates by the RBI, the government’s push for infra development and in terms of PLI scheme has triggered the ‘Make in India’ have mainly led to the rally in Indian broader markets. Also, the private capital expenditure (capex) and China plus one policy are also aiding sentiments for the broader markets.
Echoing a similar notion, Divam Sharma- Founder of Green Portfolio PMS said that the interest rate pauses by RBI and the US Fed attracted overseas investment into Indian equities. “Other economic indicators including inflation, IIP numbers, India Inc results were the other key factors leading to the high demand of Dalal Street equities as India presented better opportunities.”
According to the data from NSDL, foreign investors have remained buyers of Indian equities since March 2023. After pulling out a total of Rs 34,146 in January and February this year, FPIs have poured in about Rs 74,666 crore between March 1 and June 14, 2023. The net FPI investment in Indian equities in calendar 2023 stood at Rs 40,520 crore as of Wednesday.
BSE Sensex was slightly below its 52-week high at 63,583.07 as it scaled 63,310.96 on Thursday before giving up its gains partially. The US Fed paused interest rates on Wednesday but with a hawkish tone suggesting two hikes were possible by the end of 2023 which dented market sentiments.
Even on the technical front, the broader markets look ripe for some more gains from the current levels. Ajit Mishra, SVP – Technical Research, Religare Broking said Russell 2000 index and S&P 500 index have recovered sharply and are holding near their record highs and the Indian market is following suit.
Dow Jones has not hit new 52-week highs like Indian benchmark indices, Mishra said drawing the correction between Indian and US stocks. “Technically, smallcap stocks may rise as the Nifty smallcap 11 index is more than 11 per cent below its record highs, leaving room for more potential,” he said.
Indian economy appears to be more resilient and better shaped; analysts are of the view that investors should focus on domestic themes. They believe that the party in the broader markets is not over, rather it has just started but investors should be cautious and cherry-pick the stocks.
“There is much more juice left in the midcaps and smallcap stocks. However, Some corrections in these segments shall not be ruled out, which should be utilized to buy the dips. One can focus on PLI-linked and non-commodity sectors such as speciality chemicals, textiles, auto ancialiary, capital goods and pharma,” said Sharma from Green Portfolio.
Reconciling similar views Prabhakar from IDBI Capital said that midcap and smallcap continue to remain attractive and with more liquidity coming in, there is a potential of more upside in these segments. “It is a golden decade for India with more potential in these stocks,” he added.
Reference Link:- https://www.businesstoday.in/markets/stocks/story/midcaps-smallcaps-push-bses-market-cap-to-rs-292l-cr-has-the-party-just-started-385697-2023-06-15?utm_source=btweb_story_share