Indian stock market adds over $1 trillion to mcap in 6 months, Nifty 50 up 6% in June; What’s fueling the rally?
The Nifty 50, India’s benchmark index, has been hitting record highs in recent sessions, with gains of about six percent in June so far. This positive trend is attributed to policy continuity post the Lok Sabha election results, expectations of better economic growth, and increased foreign inflows. In fact, Nifty 50 is on track for its best month this year and is set for its ninth consecutive year of gains. Smaller and mid-sized companies have also been performing well, accounting for a significant portion of the market valuation.
Comparing Indian markets with the US, China, Japan, and Hong Kong, India’s equity market has seen a significant surge in market capitalization, outpacing other major markets. The combined market cap of Indian companies listed on the exchanges has increased by 24.5 percent to $5.23 trillion since the beginning of 2024. This growth surpasses the erosion witnessed by China’s market during the same period.
In the stock market today, the Sensex and Nifty 50 closed in the green, led by heavyweights like Reliance Industries, Bharti Airtel, and ICICI Bank. Investors’ wealth has seen a rise in the past few days of trading. The market rally has been attributed to a strong performance of large-cap stocks, with financials and consumption stocks catching up on improved balance sheets and positive economic forecasts.
The rally in Indian markets is fueled by various factors, including the performance of heavyweights like Reliance Industries, which hit an all-time high. The return of foreign investments has also contributed to the positive sentiment in the market. Overall, the market outlook remains optimistic, driven by strong fundamentals and investor confidence in various sectors.
As the Indian market continues to show resilience and growth, investors are keeping a close watch on the ongoing developments and market trends. With positive economic indicators and a supportive policy environment, the Indian market is poised for further gains in the coming months.