BackMarket rebound adds Rs25 trillion to market cap of BSE firms in last six months
The addition has been the highest such half-yearly gain since early November 2014, taking market cap to Rs110 trillion as on 30 August
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Mumbai: The bounce back of markets from 2016 lows seen in February has led to an addition of nearly ₹ 25 trillion in market capitalization of BSE-listed companies, the highest such half-yearly gain since early November 2014, to more than ₹ 110 trillion at the end of 30 August, given the huge inflows from foreign funds, and the improvement in economic growth in Asia’s third-largest economy.
Data from Bloomberg showed, market cap of BSE-listed companies rose by ₹ 24.9 trillion or nearly 28% from 29 February to ₹ 110. 7 trillion on 30 August. It touched a record close of ₹ 110.99 trillion on 31 August, and edged lower slightly at the close of 1 September to ₹ 110.59 trillion.
In the six months from March-August, foreign institutional investors (FII) pumped in a net of $8.98 billion in Indian shares.
“The rally has been a combination of improving fundamentals and abundant global liquidity. At the same time, such rally has been reflecting in emerging markets across the world," said Vaibhav Sanghavi, managing director, Ambit Investment Advisors Pvt. Ltd.
“Market will continue to follow what happens on the global scene. As long as earnings do not disappoint consensus, I think things will be fine," added Sanghavi.
BSE’s 30-share benchmark index Sensex, BSE 500 index, BSE mid-cap index and BSE small-cap index touched a 52-week low on 29 February. Since then, while Sensex has rebounded 23.88%, BSE 500 index climbed back 28.65%. BSE mid-cap and BSE small-cap indices have bounced back 38.01% and 32.55%, respectively.
A Mint analysis showed that 272 BSE 500 stocks, 40 BSE mid-cap and 386 small cap stocks touched at least a 52-week low in the first two months of the year.
Of these, 131 BSE 500 stocks logged more than 50% gains since they hit a 52-week low in January and February to the end of August, while 29 stocks more than doubled in the period.
Among the stocks in BSE mid-cap index, 19 that touched a 52-week low in the first two months of the year gained more than 50% since then to the end of August, while four stocks have doubled. Of those in the small cap index, 180 stocks added more than 50% since then, while 58 gained over 100% until the end of August.
The top gainer among those BSE 500 stocks which touched a low in the first two months of the calendar year was Delta Corp. Ltd, which has more than trebled since the end of February to the end of August by 215.31%. It was followed by Vedanta Ltd, Escorts Ltd and Hindalco Industries Ltd, which jumped 192.69%, 188.2% and 176.09%, respectively, in the same period.
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