BSE MCap Nears Record High on Festive, FII Boost

India’s stock market is shining bright this festive season! The combined market capitalisation of all BSE-listed companies has surged past ₹467 lakh crore, marking its highest level in a year, as strong foreign inflows and optimism around global trade lifted investor confidence.

This milestone was last seen on October 1, 2024, and the figure now stands just 2.3% below the record reached on September 27 last year. Since the beginning of October, investors have collectively added nearly ₹16 lakh crore in market value, reflecting strong sentiment across sectors.

Foreign Inflows and Trade Optimism Drive Market Momentum

Market analysts attribute this rally to renewed foreign investor participation and growing expectations of an early India–US trade deal, which has rekindled optimism among traders.
Adding to the positive environment, hopes of interest rate cuts from both the US Federal Reserve and the Reserve Bank of India (RBI) have further buoyed market sentiment.

Another major contributor has been the decline in crude oil prices, which has eased inflationary pressures and supported India’s macroeconomic outlook. Analysts believe these combined factors have created the perfect setting for the market to move closer to new record highs.

Also Read: Russia Says It’s Confident Energy Partnership With India Will Continue

Broad-Based Gains Across Market Segments

The ongoing rally has been broad-based, with large-, mid-, and small-cap stocks advancing in tandem. Both the Sensex and Nifty have touched nearly four-month highs, each gaining 3.6% so far this month, narrowing their gap with the record highs of September 26 to just 3.6%.

Among broader indices, the BSE MidCap index gained 3.66%, while the SmallCap index advanced 2.1%, showcasing strong participation from retail and institutional investors alike.

Sectoral Rally Led by Realty, IT, and Banking

Sector-wise, realty, IT, and banking stocks led the uptrend.
The Nifty Realty index surged 7%, driven by robust demand expectations during the festive season. Both Nifty Bank and Nifty IT climbed 5.1% each, reflecting investor confidence in India’s financial and technology sectors.

Defensive and commodity-linked sectors also joined the rally — Nifty Pharma gained 3%, and Nifty Metal rose 2.5%, signaling broad-based strength across the market.

Festive Season and Macro Positivity Brighten Market Outlook

With Diwali approaching, investor sentiment remains upbeat, supported by improving corporate earnings, robust foreign inflows, and stable macroeconomic conditions.
Experts believe that if global cues remain favorable, the BSE market capitalisation could soon surpass last year’s record, marking another high point for Indian equities.

In summary:

The Indian stock market has entered the festive season on a strong note, with BSE’s total market capitalisation crossing ₹467 lakh crore, foreign investors returning in force, and optimism growing around rate cuts and trade deals.

Click here to explore:
FII DII Data
IPO
BSE Sensex