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Market capitalisation of BSE-listed companies back above $5 trillion after three months

Currently, four countries—including the US, China, Japan, and Hong Kong—have a market capitalization in excess of $5 trillion. India’s equity market had slipped to $4.5 trillion m-cap on April 7 but has since then recovered by over $500 billion.

April 21, 2025 / 16:08 IST
Despite the ongoing recovery, the Sensex and Nifty remain over 7 percent below their 52-week highs, while the BSE MidCap and SmallCap indices are still 13.8 percent and 15.8 percent off their respective peaks.

The total market capitalization of all BSE-listed companies has crossed the $5 trillion mark for the first time in three months riding on a sustained rally in both bluechips and broader market shares.

The last time it surpassed $5 trillion was on January 20. Currently, four countries—including the US, China, Japan, and Hong Kong—have a market capitalization in excess of $5 trillion. India’s equity market slipped to $4.5 trillion m-cap on April 7, but has since then recovered by over $500 billion.

all listed mcap

This surge in the domestic markets was driven by strong performances across large, mid, and smallcap along with PSU stocks. The recent upswing followed a risk on sentiment fuelled by progress in trade negotiations and expanded tariff exemptions, after the US paused reciprocal tariffs on April 7.

Since then, Sensex and Nifty have each gained nearly 9 percent, while the BSE Mid and Smallcap indices jumped 9.4 percent and 10.6 percent, respectively. Nifty Bank rose 11 percent, and the BSE PSU Index has climbed 10 percent since April 7.

Investors are closely monitoring trade discussions with Trump administration, with US Vice President JD Vance currently on India visit, where he is slated to meeting PM Modi, and likely discuss trade issues.

Additionally, the falling crude oil prices have helped ease inflationary pressures and improve the trade balance. Domestic optimism has been bolstered by early corporate earnings estimates projecting 2–3 percent growth for the June quarter, as well as renewed foreign investor interest, with over $1 billion in net inflows over the past two sessions, according to NSDL.

Amid this swift rally, experts are advising investors should remain vigilant over global news flow. "The current market surge reflects a potent combination of strong domestic fundamentals, favourable global factors, and consistent investor confidence. The renewed optimism has driven the market to levels not witnessed since early January, marking a significant recovery. While the current bullish sentiment is strong, investors should remain vigilant regarding global economic uncertainties and monitor upcoming events and earnings reports for future market direction." said Vinit Bolinjkar, Head of Research at Ventura.

In a recent note, IIFL Securities said the rally has further room to run with a potential 5–10 percent upside from current levels. The brokerage highlighted smallcaps as increasingly turning attractive, after undergoing significant downgrades and de-rating.

IIFL said it expects Indian equities to hold their momentum, supported by softening commodity prices, currency depreciation, and valuation re-rating relative to other emerging markets. However, it also cautions that the economy remains in a cyclical slowdown, as signalled by recent macro indicators.

Meanwhile, technical analysts believe that the recent wave of negative newsflow has largely been priced in, with the Nifty forming a base in the 21,900–23,800 range. This consolidation is expected to pave the way for a potential move toward 25,500 over the next two quarters, said experts. Sector-wise, analysts recommend focusing on domestic-driven themes over global ones. Financials are expected to maintain leadership, supported by PSU, metal, telecom, pharma, and consumption sectors, while IT, capital goods, and infrastructure present attractive risk-reward setups.

Despite the ongoing recovery, the Sensex and Nifty remain over 7 percent below their 52-week highs, while the BSE Mid and Smallcap indices are still 13.8 percent and 15.8 percent off their respective peaks.

At closing, the benchmark Sensex settled at 79,408.50, up 1.09 percent, while the Nifty jumped 1.15 percent to 24,125.55 points.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​​

Ravindra Sonavane
first published: Apr 21, 2025 01:35 pm

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