What Propelled BSE to $4 Trillion Valuation?

Good Governance: The BSE's ascent to $4 trillion underlines a robust bullish trend, showcasing sustained market optimism. This achievement highlights the exchange's increasing influence within the global financial landscape.

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The Bombay Stock Exchange (BSE) achieved a significant milestone, marking a valuation of USD 4 trillion for its listed companies. This feat was reached as the BSE Sensex surged by 305.44 points, hitting 66,479.64 in early trading hours, fostering a surge of optimism in the equities market.

Historical Insights into Market Valuation

The BSE benchmark Sensex has exhibited remarkable growth, rallying by 9.10% or 5,540.52 points since the beginning of the year. Reflecting this bullish trend, the market capitalisation of all listed firms on the BSE platform has surged by approximately Rs 50.81 lakh crore.

This achievement builds upon the exchange's trajectory, as it had previously crossed the USD 3-trillion mark on May 24, 2021, and the USD 1-trillion milestone on May 28, 2007. The journey from USD 1 trillion to USD 1.5 trillion spanned over seven years, covering 2,566 days. Subsequently, the ascent from USD 1.5 trillion to USD 2 trillion took 1,130 days and further to USD 2.5 trillion in 1,255 days.

Elite League of Markets

With this accomplishment, BSE joins the elite league of markets globally, alongside the likes of the United States, China, Japan, and Hong Kong, which also boast valuations surpassing the $4 trillion mark. The BSE's recent surge signifies its continued growth and prominence within the global financial landscape.

Recent upgrades by multiple global brokerages, decent earnings for the second quarter, and a fall in crude oil also aided the gain. JP Morgan, Morgan Stanley, CLSA, and Nomura recently upgraded India to an 'overweight' rating. 

CLSA, in a recent note, said that it expects India's searing GDP growth to propel it to the top three of the globe’s largest economies, from just $3.4 trillion today to larger than Japan’s by 2027, hitting $29 trillion by 2047 and $45 trillion by 2052.