It was a historic day at the BSE. At 9:51 am on Friday, the stock exchange’s market capitalisation crossed ₹100-lakh crore, or ₹100 trillion, in intra-day trade. At that moment, the BSE Sensex clocked 28,747.24, and the market capitalisation stood at ₹100,01,143 crore.

FIIs have been buying continuously, particularly after the Narendra Modi-led Government took over on May 26. Foreign investors have so far pumped in about $16 billion this year.

Following Friday’s surge, the BSE, at $1.58 trillion, has entered the global top 10 in terms of market capitalisation. The NSE is ranked 11{+t}{+h}{+,} with a market cap of $1.55 trillion.

The top three world exchanges are NYSE ($19.2 trillion), Nasdaq ($6.84 trillion) and Tokyo SE ($4.43 trillion).

Growth potential

“This achievement is a reflection of India’s growth potential as seen from foreign investors’ perspective as well as the competitiveness of Indian entrepreneurs to manage world-class organisations.

“It has taken India and the BSE 140 years to reach this milestone of ₹100-lakh crore market capitalisation. However, given India’s potential, it should be able to achieve multiple times ₹100-lakh crore market capitalisation in time to come,” said Ashishkumar Chauhan, MD and CEO of BSE.

The Sensex closed Friday up 255 points or 0.9 per cent at 28,694 logging a market capitalisation of over ₹99.82 lakh crore. The Nifty closed at 8,588, up 94 points or 1.11 per cent. The rally was led by rate sensitive sectors such as banking, financial services and auto. All sectoral indices, barring IT, closed in the green.

Rate cut hopes

Dipen Shah, Head, Private Client Group Research, Kotak Securities, said, “Sentiments were buoyed by OPEC’s decision to sustain their production levels and the subsequent sharp fall in crude prices. The risk appetite came back and the day saw several mid-caps rise steeply.

“Expectations of a dovish move by the RBI have increased and that impacted banking stocks positively. Markets are hoping for a rate cut in the RBI policy meeting next week. Going ahead, apart from the RBI meeting, fiscal reforms from the Government will be needed for the markets to move higher on a sustainable basis.”

Echoing similar sentiment, Lalit Thakkar, MD, Institution, Angel Broking, said, “The rally in the markets has been driven by the expectations of a rate cut on December 2, at the RBI’s monetary policy meeting.

“Further, market sentiment has also boosted due to sharp correction in Brent crude oil prices, which is likely to have positive impact on current account deficit and fuel price inflation. We believe that the Sensex momentum is likely to continue due to strong earnings growth going forward.”

Domestic institutional and retail investors (on the BSE), however, sold net equity worth ₹439 crore and ₹182 crore, respectively. Volatility was up 1.22 per cent and the India Vix closed the week at 12.8975.

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