BSE Market Capitalisation Crosses $5 Trillion Again After Three-Month Dip

The total market capitalisation of all companies listed on the Bombay Stock Exchange (BSE) has once again crossed the $5 trillion mark. This recovery comes after a gap of three months and reflects a strong rally across large, mid, and smallcap stocks.

The last time the market capitalization exceeded this level was on January 20. By April 7, it had dipped to around $4.5 trillion but has since rebounded by over $500 billion. India now joins the ranks of the US, China, Japan, and Hong Kong countries with equity markets valued above $5 trillion.

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What’s Driving the Market Recovery?

Multiple factors have contributed to this sharp recovery. One key factor is a broad-based rally in blue-chip companies and PSUs. Positive global cues, especially the easing of trade tensions following the pause on reciprocal tariffs on April 7, potentially boosted investor sentiment.

Since then, benchmark indices have shown substantial gains. The Sensex and Nifty have both risen nearly 9%. Meanwhile, the BSE Midcap and BSE Smallcap indices are up by 9.4% and 10.6%, respectively. Sectoral indices also witnessed impressive jumps, with Nifty Bank climbing 11%, and the BSE PSU Index surged by 10%.

Global and Domestic Tailwinds Support the Rally

Investors are monitoring the ongoing trade talks closely. US Vice President JD Vance's visit to India, where he is scheduled to meet Prime Minister Narendra Modi, has further raised hopes of positive developments in trade relations.

Falling crude oil prices have also helped cool inflation and improve the trade balance. According to NSDL data, renewed foreign investor interest has also been recorded, with over $1 billion in net inflows recorded in the past two trading sessions.

On the earnings front, early projections for the June quarter indicate a 2–3 % growth in corporate profits, which has added to the market's overall optimism.

Markets Yet to Reach Previous Highs

Despite the recent rebound, major indices are still below their peak levels. The Sensex and Nifty remain over 7% off their respective 52-week highs. The BSE Midcap and Smallcap indices are even further behind, trading 13.8% and 15.8% lower than their record highs.

As of 11:24 AM today, the Nifty is trading at 24,232.35, up 0.40%, while the Sensex is at 79,782.70, higher by 0.47% from the previous session.

Conclusion: A Positive Sign, But Caution Remains

BSE’s return to the $5 trillion market cap club is a significant milestone, reflecting renewed investor confidence and positive economic cues. However, the road ahead may be bumpy, with benchmark indices still trailing their previous highs. Investors will likely stay cautious, closely monitoring global developments, crude prices, and upcoming earnings reports.