BSE Market Cap Increases Rs 3.86 Lakh Crore In Two Days Fuelled By Modi’s Return
Investor wealth has gone up by Rs 3.86 lakh crore in two days of market rally, where the benchmark Sensex gained 872 points after the decisive mandate for the Bharatiya Janata Party in 2019 Lok Sabha elections.
Sensex has gained 871.9 points in two days. On Monday, it closed 248.57 points higher at 39,683.29.
Led by the rally in the equity markets, the market capitalisation of companies listed on the Bombay Stock Exchange rose by Rs 3.86 lakh crore to Rs 154 lakh crore. At the close of trade on Thursday, the market valuation of BSE-listed firms was Rs 1.5 lakh crore.
The Sensex had hit its all-time high of 40,124.96 intraday on May 23, the day election results were announced.
“Indian markets end the day on a positive note. The markets continue their upward trend supported by FII buying in the past two consecutive trading days. The current government wining the general elections by a two-thirds of majority will clam the political environment in the country,” said Hemang Jani, head (advisory) at Sharekhan by BNP Paribas.
Slowdown in global growth, the U.S.-China trade war along with rise in oil prices pose an immediate threat to domestic markets. “However, post the elections, we now expect the market to revert to fundamental issues such as earnings growth,” Jani added.
Among sectoral indices, the BSE capital goods, power, industrials, utilities, metal and realty indices rallied up to 3.06 percent.
In the broader market, the S&P BSE Midcap index gained 1.13 percent while the BSE Smallcap rose 1.77 percent.
On the BSE, 1,793 scrips advanced, while 785 declined and 188 remained unchanged.