The broad-based rally on Dalal Street has taken the combined market capitalisation of the country to $3.5 trillion on Wednesday—the first time since December 1, 2022. While the benchmark Nifty50 is trading at about one percent away from its record high, bluechips like Axis Bank, Titan Co, Nestle India, Bajaj Auto and many other have already tested their fresh life-time highs.
On Wednesday, Axis Bank also became the fifth lender to cross the rupees three lakh crore market cap. Earlier, HDFC Bank, ICICI Bank, State Bank of India and Kotak Mahindra Bank have achieved this milestone. Analysts at Jefferies observed, Axis Bank’s shares are trading at an attractive valuation and there is scope for further gains as the lender integrates its operations with Citibank India’s retail business. “We see healthy growth and scope for valuations to re-rate,” wrote the foreign brokerage in an investor note.
With the China’s recovery is losing momentum, foreign portfolio investors (FPIs) have once again started piling into Indian stocks. After selling Indian shares worth $2.5 billion in the first quarter of calendar year 2023, overseas investors upped their buying by deploying $ 7.3 billion between April 01 and now, Bloomberg data showed. The combined market capitalisation of companies listed in India rose 3.5 percent over the last one month, against 5.6 percent decline clocked by Chinese market.
While a rebound in Adani group shared gathered steam, strong earnings performance by domestic companies and signs of economy gaining further strengths added to the momentum. “We continue to prefer beneficiaries of the investment and credit cycle in the economy along with high-end discretionary consumption,” said Vinod karki, Equity Strategist at ICICI Securities.
Interestingly, the Nifty SmallCap index has been closing in the green for the 14th session, whereas the Nifty MidCap index has been doing so for the 13th sessions in a row. Both the indices have gained seven percent and six percent respectively, during their winning streak.
Last month India had reclaimed its spot as the world’s fifth largest stock market after losing that status spot to France in January.
