India’s market capitalisation has surged to an 11-month peak driven by a strong rally in equities since the start of September.
The combined value of all BSE-listed companies crossed Rs 465 lakh crore — a level last seen on 3 October 2024. The figure now stands just 2.7 percent shy of the record high touched on 27 September 2024. Since the start of September, investors have added nearly Rs 20 lakh crore in value, underscoring strong participation across segments.
Gains have been broad-based, with large-, mid- and small-cap stocks rallying in unison. The Sensex and Nifty rose 3.6 percent each so far this month, narrowing their distance to record highs of 26 September 2024 to just 3.6 percent.
The BSE MidCap index climbed 4.7 percent, while the SmallCap index surged 6 percent. State-owned companies led the rally, propelling the BSE PSU Index higher by 7.5 percent. Among sectoral indices, BSE Auto gained 9 percent, Oil & Gas advanced 4.5 percent, and the BSE 500 — a broad market gauge — added 5 percent during this period.
The uptrend has been fuelled by optimism over progress in India–US trade talks and expectations of rate cuts by the US Federal Reserve. Auto and energy counters have led the charge, supported by resilient domestic demand, government-led GST cuts, and firm fuel consumption trends.
Technically, experts flagged immediate resistance at 25,400. A breakout could open the path towards 25,500–25,600, while support lies at 25,250 and 25,100.
Analysts expect the rally to extend after the Fed’s 25-basis-point rate cut, with the RBI also seen as a potential candidate for easing in October 2025 amid softening inflation. Meanwhile, three mainboard IPOs, including Urban Company, made a robust debut, reflecting strong appetite for niche midcaps, they added.
Looking ahead, analysts anticipate a gradual up-move supported by Fed liquidity, trade progress, and sector-specific strength. While valuations remain elevated, earnings momentum is expected to pick up over the next few quarters, led by banks, NBFCs, and consumption sectors such as automobiles. IT services and investment-linked plays may lag, given weak demand and muted capex trends.
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