Mumbai : BSE market capitalization rose to Rs 465 lakh crore, marking an 11-month high as strong investor sentiment and market gains lifted the value of listed firms.
A widespread rally and renewed optimism over the resumption of India–US trade talks and the US Fed rate cut fueled the surge. The figure stands just 2.7% below the all-time peak recorded on September 27, 2024, adding nearly Rs 20 lakh crore since early September.
Potential easing by the Reserve Bank of India (RBI) in October also boosted investor sentiment, as domestic inflation showed signs of softening.
Benchmark indices Sensex and Nifty rose about 3.5% this month, narrowing the gap to record highs seen on September 26, 2024.
State-owned firms drove the rally, pushing the BSE PSU Index up 7.5%, while the BSE 500 gained 5%. Sectoral gains included BSE Auto (+9%), BSE Bankex (+6.8%), BSE Metal (+8.1%), and Oil & Gas (+4.5%).
Mid-cap and small-cap stocks performed strongly, with the BSE MidCap index rising 4.7% and the BSE SmallCap edging up 6%.
Analysts noted that the Indian stock market is unlikely to feel significant impact from the US Fed decision. They attributed the ongoing rally to expectations of earnings revival among Indian corporates.
Market watchers highlighted that corporate earnings could grow above 15% in FY27 due to GST reforms, potentially reversing FPI sentiment.
Some analysts cautioned that valuations remain high but said earnings momentum should improve, led by banks, NBFCs, and the consumption sectors.
Meanwhile, the Nifty 50 held firmly above 25,300 in the previous session, reinforcing psychological strength and signaling investor comfort at higher levels. Analysts see potential upside momentum, with resistance around 25,400–25,500 and support at 25,000–24,900 zones.
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