The market capitalisation of India's listed firms has moved closer to its one-year high, driven by renewed foreign investor buying and growing expectations of an early India–US trade deal. The rally also gained support from improving corporate earnings prospects and a sustained decline in crude oil prices, which bolstered overall macro sentiment.
The combined market capitalisation of all BSE-listed companies climbed past Rs 467 lakh crore, a level last seen on October 1, 2024. The figure now stands just 2.3 percent below the record high touched on September 27 last year. Since the start of October, investors have added nearly Rs 16 lakh crore in market value.
The gains were broad-based, with large-, mid-, and small-cap stocks advancing in tandem. Both the Sensex and Nifty hit nearly four-month highs, rising 3.6 percent so far this month and narrowing their gap with the record highs of 26 September to just 3.6 percent.
The BSE MidCap index gained 3.66 percent, while the SmallCap index advanced 2.1 percent. Sectorally, realty, IT, and banking shares led the uptrend, with Nifty Realty surging 7 percent, and both Nifty Bank and Nifty IT climbing 5.1 percent each. Nifty Pharma and Nifty Metal gained 3 percent and 2.5 percent respectively.
Analysts said sentiment was further boosted by expectations of rate cuts from the US Federal Reserve and the Reserve Bank of India. Progress in India–US trade discussions, particularly on energy cooperation, also lifted investor confidence.
Experts, however, noted that while the short-term market texture remains bullish, overbought conditions could trigger range-bound movement. Key support levels are pegged at 25,500–25,400 for the Sensex and 83,200–82,900 for the Nifty, while resistance is seen near 25,725–25,800 and 83,800–84,000 respectively. A slip below the support zone could make the uptrend vulnerable, analysts cautioned.
In the last eight sessions, FIIs have been net buyers in six, investing over Rs 4,000 crore in the secondary market, while domestic institutional investors (DIIs) have infused more than Rs 18,000 crore.
The sharp rebound ahead of Dhanteras, supported by an appreciating rupee and positive global cues, has revived investor sentiment after weeks of volatility. Still, analysts advised patience, saying heavy short positions and selective profit-taking suggest the market needs a clear, sustained trend before confirming a full-fledged FII comeback.
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