9 of India’s 10 most-valuable firms gain ₹3.3 lakh crore in a week
The Indian stock market has been on a roll lately, with investors optimistic about the country’s economic prospects. The latest data reveals that the collective market capitalisation of nine out of India’s top 10 most-valued companies has jumped by a staggering ₹3.35 lakh crore in the week ended May 16. This significant surge is a testament to the growing confidence of investors in the Indian economy.
According to the latest data, the biggest gainer was Reliance Industries, which saw its market capitalisation increase by ₹1.45 lakh crore to reach ₹14.45 lakh crore. This is not surprising, given the company’s diverse portfolio and its ability to adapt to changing market conditions. Reliance Industries has been a dominant player in the Indian market for years, and its growth is a reflection of the company’s strong fundamentals.
Other major gainers included Tata Consultancy Services, HDFC Bank, and Infosys, which saw their market capitalisation rise by ₹1.13 lakh crore, ₹1.05 lakh crore, and ₹93,000 crore, respectively. These companies are all leaders in their respective industries and have a strong track record of performance.
The only exception to this trend was Bharti Airtel, which saw its market capitalisation decline by ₹23,000 crore to reach ₹3.35 lakh crore. This is not unexpected, given the intense competition in the telecom sector.
So, what drove this significant surge in market capitalisation? There are several factors at play here. Firstly, the India-Pakistan ceasefire has helped to ease tensions in the region, which has boosted investor sentiment. The ceasefire has also had a positive impact on the economy, with trade and tourism between the two countries likely to increase in the coming months.
Secondly, sustained foreign institutional investor (FII) buying has been a major factor in driving the market up. FIIs have been attracted to India’s growth story, and their buying has been a key driver of market momentum. With the Indian economy expected to grow at a rate of over 7% in the current fiscal year, FIIs are likely to continue to be attracted to the country’s equities.
Thirdly, the cooling inflation rate has also been a positive factor. Inflation has been a major concern for the Indian economy in recent years, but the latest data suggests that it is slowly coming under control. This has helped to boost investor sentiment, as a lower inflation rate means that the Reserve Bank of India (RBI) is likely to cut interest rates in the coming months. Lower interest rates would make borrowing cheaper, which would have a positive impact on the economy.
Overall, the surge in market capitalisation of India’s top 10 most-valued companies is a reflection of the growing confidence of investors in the Indian economy. With the country’s growth story looking strong, and the RBI likely to cut interest rates in the coming months, it’s likely that the Indian stock market will continue to be a major driver of growth in the coming years.
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