India is a new age powerhouse with Rs 100 tln Sensex kitty: BSE CEO

Market capitalisation of the Bombay Stock Exchange crossed Rs 100 trillion mark on Friday.

Scaling a new peak, the total investor wealth in Indian stock market today hit a record high of Rs 100 trillion, marking a jump of ten times in little over a decade.

Measured in terms of total market capitalisation of all listed companies on the country's biggest bourse BSE, the overall investor wealth in the Indian stock market rose to Rs 100.01 lakh crore in early morning trade at 1005 hours as benchmark Sensex soared by over 300 points in its continuing record rally.

On this landmark moment, Ashishkumar Chauhan (below left), managing director and CEO, BSE said, “India and BSE reached a significant milestone today. ‎It is a reflection on the potential of India as a new age powerhouse. It is also significant that it has happened after highly successful tour of our Prime Minister Narendra Modi to Nepal for SAARC, Australia for G20, Myanmar and Fiji."

This achievement is a reflection of India's growth potential as seen from the foreign investor’s perspective as well as the competitiveness of Indian entrepreneurs to manage world class organisations, he added.

He further said, “BSE believes India can create 1.5 crore new jobs every year for next 20 years aggregating to 30 crore jobs using entrepreneurial energy of Indian youth. "

BSE will continue to act as the catalyst for wealth creation and job creation in time to come. It has taken India and BSE 140 years to reach this milestone of Rs 100 lakh crores market capitalisation. However given India's potential, India should be able to achieve multiple times Rs 100 lakh crore or Rs 100 trillion market capitalisation in time to come, he said.

Meanwhile, the total market cap of all BSE listed companies had crossed Rs 10 lakh crore or Rs 10 trillion mark nearly 11 years ago in 2003, while it has doubled from about Rs 50 lakh crore or Rs 50 trillion five years ago in 2009.

The 30 Sensex companies alone, which are among the biggest companies in the country, now account for nearly 50 per cent or about Rs 47 lakh crore of total investor wealth.

This included TCS, the country's most valued firm and the only entity to have a market value of over Rs 5 lakh crore, followed by state-run ONGC and private sector behemoth Reliance Industries with market caps of over Rs 3 lakh crore or Rs 3 trillion each.

Those commanding market cap of over Rs 2 lakh crore  or Rs 2 trillion include ITC, Infosys, HDFC Bank, SBI and Coal India.

Besides, ICICI Bank, HDFC, Sun Pharma, HUL, Bharti Airtel, L&T, Wipro, Tata Motors, HCL Tech, NTPC and Axis Bank have market cap of over Rs 1 lakh crore  or Rs one trillion each.

Among these, ICICI Bank is very close to moving into Rs 2 lakh crore or Rs 2 trillion club.

Of the overall stock market wealth, promoters command nearly 50 per cent share, while foreign investors own close to 20 per cent and the rest is shared between institutional and retail investors from India.  

Meanhile, the benchmark BSE Sensex spurted to a new peak of 28,765.52 and the NSE Nifty scaled a life-time high of 8,591.40 in opening trade on Friday as December series in the derivative segment commenced on a strong footing on sustained fund inflows amid falling global crude prices.

Besides, positions enlarged by retail investors ahead of the September quarter GDP data to be released later in the day and RBI monetary policy review next week also influenced trading sentiment, brokers said.

The 30-share index, which had gained 100.86 points in the previous two sessions, zoomed by 326.61 points, or 1.14 per cent, to trade at a fresh record-high of 28,765.52, breaching previous peak of 28,541.96 reached on November 24. All the sectoral indices, led by banking, consumer durables and auto, were trading in the positive territory with gains up to 2.03 per cent.

On similar lines, the National Stock Exchange index Nifty climbed 97.20 points, or 1.14 per cent, to scale a new peak of 8,591.40, surpassing its earlier record of 8,535.35, touched on November 25.

Sentiments bolstered on continued buying by foreign funds and retail investors as global crude oil prices fell to over 4-year lows, which is likely to help the government to tackle both current account and fiscal deficits and also lower subsidy bill, they said.

Globally, Brent crude prices dipped to over four-year low of USD 72.59 per barrel in Asian trade.

Among other Asian markets, Hong Kong's Hang Seng index fell by 0.14 per cent, while Japan's Nikkei moved up by 1.05 per cent in early trade today.