D-St joins ₹500 lakh cr club after Diwali glitter

Mumbai: The combined market capitalization of all companies listed on the BSE crossed the ₹500 lakh crore mark for the first time on Thursday, reaching approximately ₹502 lakh crore ($5.31 trillion). This significant milestone occurred after a steady increase in equities and the addition of newly listed companies, requiring 622 trading sessions to reach this level, having previously crossed the ₹400 lakh crore mark on April 8, 2024.

The journey to this massive figure began on March 12, 2014, when the mcap hit the ₹100 lakh crore milestone after 1,494 trading sessions. The ₹300 lakh crore goal was achieved on July 6, 2023, after 586 trading sessions. Despite the benchmark Sensex and other indices remaining below their record highs, with the Sensex currently 7.6% below its peak, the BSE MidCap 150 is 5.3% below its record, the BSE SmallCap 250 is 8.4% below its peak, and the BSE MicroCap 250 is 7% below its record, the overall mcap has reached a historic high.

This achievement can be attributed to the continuous stream of initial public offerings (IPOs), with 94 companies debuting on the mainboard in 2024, adding around ₹12 lakh crore to the mcap, and 115 in 2025, contributing nearly ₹14 lakh crore. In 2026, 107 companies have listed, adding above ₹25 lakh crore to the total. The rally has been bolstered by a sharp decline in crude oil prices, reducing concerns over inflation, India's import bill, and the rupee.

Additionally, strong foreign portfolio investor (FPI) buying, positive global cues following US midterm elections, and better-than-expected second-quarter earnings have strengthened investor sentiment. If crude prices remain stable and foreign inflows continue, the momentum could persist. However, investors should remain cautious as geopolitical developments, crude price volatility, and profit booking after the sharp rally could limit further upside.