Indian stock market is now the seventh biggest, up by three spots, in the world as total market capitalisation increased to $ 2.7 trillion. The BSE Sensex crossed 51,000 points on 5 February while the NSE benchmark Nifty crossed the 15,000 level for the first time. Including Friday’s gains, the benchmark Nifty has gained 6.9% so far in 2021.
Markets jumped to fresher highs on 8 February in early trade with both the equity indices trading 1.15% higher.
The BSE Sensex rose 589.45 points or 1.16% to 51,321.08 in early trade. On the other hand, the NSE Nifty rose 167.20 points or 1.12% to 15,091.45.
Major gainers in the Sensex pack were M&M, Axis Bank, SBI, ICICI Bank, ONGC, IndusInd Bank, Powergrid, Kotak Bank, Bajaj Finance, Bharti Airtel, LT, HDFC Bank, rising upto 9.22%. On the other hand, NTPC, Bajaj Auto and Ultrachem were the major losers, falling upto 0.55%.
Indian stock market is now bigger than Canada, Germany and Saudi Arabia. India’s stock market is the second-best performer among the top 15 countries in 2021 and soon it may overtake France to become the sixth biggest in the world. The total market capitalisation of France now stands at $ 2.86 trillion.
Almost after 11 months, the Indian stock market edged past Canada, which is now the eighth biggest on the basis of market capitalisation. Europe’s largest economy Germany has a market value of $ 2.53 trillion. Only two European countries — France and the United Kingdom — are among the top seven markets, the business daily mentioned.
The MSCI India index has gained 21% in the last three months compared to 19% by MSCI Emerging Market and 12% by MSCI World indices.
Foreign portfolio investors have pumped in nearly $ 4.05 billion in Indian equities since 1 January, the second-best inflow among emerging markets after Brazil which saw investments of $ 4.5 billion during this period. Weakness in the US Dollar has helped emerging markets’ performance in recent months.
Analysts say India has been among the better performers also because of a faster recovery in domestic demand after the Covid-19-led disruptions and the government’s focus on reviving the economy.
Based on the latest IMF projections, India’s growth will rebound sharply to 11.5% in FY22 and 6.8% in FY23.