Due to persistent domestic money flow and promising economic growth, investor optimism drove the market capitalization of BSE-listed companies to a record $5 trillion on Tuesday. In about half a year, the market capitalization surged from $4 trillion to $5 trillion, marking the quickest $1 trillion increase in history.
For this time, the rupee has likewise been flat. Compared to November 29, when the $4 trillion milestone was reached, it closed at `83.31 versus the US dollar on Tuesday. At the time of closing, the overall valuation was $4.97 trillion, the highest ever. In terms of company market capitalization, the US, China, Japan, and Hong Kong surpass India.
On the other hand, the Sensex ended the day level at 73,953.31, down 0.1% or 52.62 points. The Nifty increased by 25.05 points, or 0.1%, to settle at 22,529.05, a slight increase. The India VIX increased by 6% during the day and crossed the 22 mark, indicating that the indexes were still very volatile. It ended at 21.81, a 20-month high. Because of the uncertainty surrounding the number of seats that the incumbent administration can win in the next elections, the fear index has more than doubled in the past month.
Experts linked Monday’s low voter turnout in the fifth phase of the election—which was seen as a negative for the incumbent government—to Tuesday’s spike in the India VIX. Indian shares have been supported despite the sporadic volatility by consistent inflows from domestic investors, especially individual investors, in light of the country’s shifting demographics and promising economic growth prospects. Mutual fund SIPs crossed `20,000 crore last month for the first time.
Tuesday’s intraday trade saw the BSE Midcap and BSE Smallcap indices reach new all-time highs, while the benchmark Sensex is now circling around these new high levels.
