Investors' wealth crosses Rs 400 lakh crore for the first time

Mumbai, Ahmedabad: Positive factors including strength in global markets, confidence of formation of a stable and strong government after the elections in the country, stop on the rise in crude oil prices continuously created new records in the Indian stock markets today. Sensex, Nifty based Sensex reached new all-time high as investors' wealth in shares i.e. total market capitalization of BSE listed companies crossed Rs 400 lakh crore for the first time. 400.86 lakh crore reached a new historical high. With this, a record Rs 100 lakh crore has been added to the market cap in the last 9 months. Whereas it took 38 months for the total market capitalization to reach Rs 200 lakh crore from Rs 400 lakh crore.

The market capitalization of BSE listed companies crossed Rs 300 lakh crore on 11 July 2023. Which has today reached a new historical peak of Rs 400.86 lakh crore. The market capitalization had earlier crossed Rs 200 lakh crore for the first time on February 4, 2021. Thus, from Rs 200 lakh crore to Rs 400 lakh crore it has taken 38 months.

On July 11, 2023, Nifty was at the level of 19,400. Today, at one time it climbed 183.60 points and created history at 22697.30 points, at the end of trading it closed at a new record level of 22666.30 points by climbing 152.60 points. Thus, Nifty has increased by more than 16 percent during this period. After crossing Rs 50 lakh crore for the first time in 2007, the market capitalization of BSE listed companies crossed the Rs 100 lakh crore mark in 2014 and crossed the Rs 200 lakh crore mark in 2021 on February 4, 2021.

On July 11, 2023, Sensex was at 65617.84. During this period it increased and today it jumped by 621.08 points and made a new record of 74896.30 points and finally closed at a new record level of 74742.50 points with a gain of 494.28 points. Funds made heavy purchases in large-cap stocks and A-group shares, while there was limited buying in small, mid-cap stocks today.

The small cap index also reached its all-time high today. The midcap index made a new all-time high today. BSE Small Cap Index went up to 46410.34 today and finally closed at 46003.86, down 28.85 points. Which is a little away from its highest level of 46821.39 on 7 February 2024. Whereas BSE Mid Cap Index today created a new record of 41113.16 and closed at 40937.30, up 106.76 points.

GDP to market cap ratio 1.33 percent

India's market cap to GDP ratio, also known as the Buffett indicator, stood at 1.33 percent as of April 8. This is higher than the 10-year average of 0.93. The current surface is not at the highest level. Earlier in 2007, the M-cap to GDP ratio had reached a high of 1.464, which fell below one again in 2008 and remained below one as of December 2020. But then, especially after Corona, this ratio was in favor of the stock market and has been above one percent for the last four years. In 2021, the GDP to market cap ratio was exactly at the level of 100. Moreover, the current ratio can be said to have reached a 17-year high. In 2001, this ratio was at its lowest level of 0.23 percent.

India ranks fourth in the world in terms of market cap.