You are here: Home » Markets » News
Business Standard

BSE listed companies' market-cap hits record high at Rs 160.68 trillion

The S&P BSE Sensex is just 4 per cent away from its all-time high level of 42,273.87, touched on January 20, 2020.

BSE Market Capitalisation | Markets | Sensex

Deepak Korgaonkar & Puneet Wadhwa  |  Mumbai 

bse, sensex, market
The Bombay Stock Exchange (BSE) building in Mumbai. (Photo: Bloomberg/ Dhiraj Singh)

The total market capitalisation of BSE-listed companies touched a new high of Rs 160.68 trillion on Friday, led by Reliance Industries (RIL), information technology (IT), and pharmaceutical stocks. Investor wealth of BSE-listed firms, measured by market capitalisation (m-cap), saw a previous record high of Rs 160.57 trillion, scaled on January 17, 2020, the BSE data shows.

At 02:40 pm, the benchmark S&P BSE traded at 40,526 points. The index is just 4 per cent away from its all-time high level of 42,273.87, touched on January 20, 2020. The S&P BS Sensex, however, ended the day at 40,509 levels - up 327 points, 0.8 per cent. On the other hand, the S&P BSE Midcap and the S&P BSE Smallcap index are over 20 per cent away from their respective record high levels hit during January 2018.

RIL steals the show

In absolute terms, Reliance Industries, which was trading close to its record high level, contributed Rs 4.67 trillion to the m-cap since January 17 level. The top four IT companies -- Tata Consultancy Services (Rs 2.25 trillion), Infosys (Rs 1.42 trillion), HCL Technologies (Rs 70,243 crore), and Wipro (Rs 69,969 crore) -- have collectively contributed Rs 5.08 trillion m-cap rise during the period.

Ten pharmaceutical companies including Dr Reddy’s Laboratories, Divi’s Laboratories, Cipla, Aurobindo Pharma, and Biocon have collectively added Rs 2 trillion m-cap, while, Adani Green Energy, Hindustan Unilever, Asian Paints, and Tata Consumer Products are among notable companies added a combined Rs 1.75 trillion m-cap since January 17.

"A 14 per cent (US$) rise over the past three months has placed India among the top emerging market (EM) performers. While the Indian market is still down YTD by around 2 per cent, it is substantially better than other EM, excluding China which is down over 10 per cent. Interestingly, Indian financials, though lagging vis-a-vis the benchmark, have performed substantially better than EM financial index and are the fourth best among 14 large EMs on a one-month and three-month basis. We believe financials are an attractive play on India's economic improvement," wrote Mahesh Nandurkar, managing director and head of India research at Jefferies in an October 8 co-authored note with Abhinav Sinha.

New listings

The six recently listed companies which include SBI Cards and Payment Services, Computer Age Management Services (CAMS), and Happiest Minds Technologies, added Rs 1.01 trillion in total m-cap, also led the BSE m-cap to hit a new high.

Only 177 stocks from the S&P BSE500 index were trading above their January 17 levels, despite the market cap hitting a new high today. Out of 323 stocks, 19 scrips have seen their market valuation more-than halve, including IndusInd Bank, Canara Bank, Punjab National Bank, Bank of Baroda, Future Retail, and SpiceJet. While a total of 135 stocks declined in the range of 25 per cent to 50 per cent.

Going ahead, analysts feel that the market can fully recover its losses triggered by the Covid-19 pandemic. After hitting the bottom on March 23, have made a sharp recovery over the past six months, although with intermittent interruptions. Over this period, the while the Nifty has gained around 50 per cent, the broader market has outperformed with the midcap and small-cap indices rallying around 55% and 75%, respectively.

"Our analysis of past market corrections suggests midcap falls tends to be sharper and take longer to recover However, midcap begin to outperform largecap in the later stage of recovery. Given the strong outperformance witnessed in smallcap and midcap indices recently, we believe this as a sign of market being ready to fully recover its losses from the COVID-19 crash," said Pradeep Kumar Kesavan, senior vice-president for equity strategy at Elara Capital.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 09 2020. 15:13 IST