Market At Record High: Nifty & Sensex Soar, Reliance & HDFC Bank Fuel Rally; BSE M-Cap Above Rs 400 Lk Cr

The collective market capitalisation of companies listed on the Bombay Stock Exchange (BSE) soared past the Rs 400 lakh crore mark during today's trading session. This remarkable feat comes amidst a sustained surge in the stock market, spanning large, mid, and small-cap stocks, marking the third consecutive session of significant gains. Leading the charge are heavyweight stocks, which have been instrumental in propelling this surge, backed by positive financial updates from various companies, setting an optimistic tone as the earnings season approaches.

The Sensex and the Nifty kicked off the week with a remarkable surge, reaching new all-time highs on the morning of April 8. This upward momentum was influenced by encouraging signals from the US and other Asian markets, coupled with anticipations of a robust earnings season domestically.

Driving this bullish sentiment is the robust business update from HDFC Bank, a heavyweight in the market, which has substantially boosted index performance. Furthermore, encouraging auto sales figures have further buoyed investor optimism, underscoring confidence in the trajectory of economic growth. Notably, Reliance Industries, the country's largest company by market capitalisation, has also showcased formidable performance, contributing to the overall market upswing.

The benchmark 30-share BSE Sensex index surged by 567 points or 0.76%, hitting yet another record high at 74,841. Year-to-date, the index has witnessed an impressive surge of 3.28%, capping off the previous calendar year with a remarkable return of 18.74%. This upward trajectory marks a significant milestone for the oldest stock exchange in Asia, which first reached a market capitalisation of Rs 100 lakh crore in March 2014, followed by Rs 200 lakh crore in February 2021. Subsequently, it achieved the Rs 300 lakh crore milestone in July 2023, and now, within just nine months, it has crossed the Rs 400 lakh crore mark.

Meanwhile, the combined market capitalisation of firms listed on the National Stock Exchange (NSE) is also edging towards the Rs 400 lakh crore milestone. On December 1, 2023, NSE-listed firms crossed the $4 trillion mark (Rs 334.72 lakh crore), marking a significant milestone. The transition from $2 trillion in July 2017 to $3 trillion in May 2021 took approximately 46 months, whereas the subsequent leap from $3 trillion to $4 trillion occurred in a mere 30 months. Impressively, the index covered the next $0.75 trillion in just three months, driven by substantial retail participation, robust foreign portfolio investor (FPI) inflows, bolstered by improved global sentiment, and robust domestic economic growth.

Notable gainers on the Nifty index include Eicher Motors, Maruti Suzuki, M&M, RIL, and Shriram Finance, while Adani Ports, Apollo Hospital, Nestle, Adani Enterprises, and Sun Pharmaceutical experienced declines. On the Sensex front, Maruti Suzuki, M&M, RIL, Axis Bank, and JSW Steel emerged as key gainers, while Nestle, Sun Pharmaceutical, Wipro, Bajaj Finance, and HDFC Bank faced losses.

In individual stock movements, FSN E-commerce, the parent company of Nykaa, witnessed a notable surge of 5% following a promising business update projecting strong growth in Q4. Conversely, Bandhan Bank experienced a downturn, with shares plummeting by 9% in early trading, attributed to the decision of Chief Executive Officer and Managing Director Chandra Shekhar Ghosh to step down.

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