Market capitalisation of BSE listed firms soars past $3 trillion-mark

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A strong rally in midcap and smallcap stocks on May 24 took the market capitalisation of BSE listed companies to an all-time high of Rs 219.35 lakh crore i.e. over 3 trillion dollars.

“Market capitalization of equities of listed companies on @bseindia reached $3 trillion intraday for the first time ever. A great milestone on a long journey. Congratulations to all 6.9 crore+ registered investors, 1400+ brokers, 69,000+ MF distributors and 4700+ companies,” Ashishkumar Chauhan, CEO of BSE, tweeted.

Market capitalization of equities of listed companies on @bseindia reached USD 3 trillion intra day for the first time ever. A great milestone on a long journey. Congratulations to all 6.9 crore+ registered investors, 1400+ brokers,69,000+ MF distributors and 4700 + companies.

— Ashish Chauhan (@ashishchauhan) May 24, 2021

Meanwhile, the BSE Midcap index hit an all-time high of 21,716 and ended at a record high of 21,669 gaining 0.86%. Stocks like Natco Pharma (up 9.69%), Concor (up 8.45%), Adani Transmission (up 5%), Adani Green (up 5%) and Page Industries (up 4.16%) were among the top gainers.

Likewise, the BSE Smallcap index touched a record high of 23,337 and ended at 23,291 surging 0.70%. Jtekt India (up 19.96%), MEP (up 19.80%), Astec (up 16.14%), Dollar (up 14.22%) and GNA (up 13.79%) rose the most on the index.

Journey to Mt $3 trillion

In the past 19 years, the market capitalisation of all BSE companies has surged from $125 billion to $3 trillion.

In the first five year period between March 2002 to May 2007, the market capitalisation jumped almost 4 times from $125 billion to $1 trillion. However, the global meltdown of 2008 led by the Lehman Brothers crisis put a brake on this upward trend.

The momentum started picking up in 2013 and soon after Narendra Modi becoming the Prime Minister of the country Market capitalisation of BSE listed firms touched $1.5 trillion on June 6, 2014. Since then the trajectory has been north and in almost seven years it doubled to the $3 trillion mark in May 2021 with a much higher base compared to that in March 2002.

@bseindia timeline for market cap US$ 125 billion: March 2002 US$ 500 billion: Aug 2005 US$ 1 trillion: 28 May 2007 US$ 1.5 trillion: 6 June 2014 (2566 Days) US$ 2 trillion: 10 July 2017 (1130 Days) US$ 2.5 trillion: 16 Dec 2020 (1255 Days) US$ 3 trillion: 24 May 2021 (159 Days)

— Ashish Chauhan (@ashishchauhan) May 24, 2021

Ashishkumar Chauhan, CEO of BSE, further tweeted that India’s market cap to GDP ratio in % now at 112.

India’s market cap to GDP ratio in % now at 112. A trend line chart of the market cap to GDP along with the @SENSEX_BSE values at @BSEIndia given her. One of the reasons – Market cap numbers change real time. GDP numbers don’t. pic.twitter.com/aBxEByvskf

— Ashish Chauhan (@ashishchauhan) May 24, 2021

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