New Delhi: The Indian stock market achieved a new high on Tuesday, surpassing 5 trillion dollars in market capitalization for the first time, against the backdrop of ongoing parliamentary elections.
The stock market generated $1 trillion in just 6 months to join the elite $5 trillion club, defying the FII exit before the outcome of the Lok Sabha election on June 4.
The aggregate market capitalisation of all listed equities on the BSE increased to Rs 414.75 lakh crore (5 trillion dollars) on Tuesday as investors continued to pile up stocks in the broader market, while the Nifty and Sensex struggled for directional indications following last week's gain.
The Nifty is now approximately 250 points off its all-time high, while the mid and small-cap indices reached fresh highs on Tuesday.
Domestic institutional, retail, and HNI investors are driving this leg of the bull run, despite FIIs withdrawing at least Rs 28,000 crore this month.
India's stock market is the fifth-largest, trailing only Hong Kong, Japan, China, and the United States.
India reached $1 trillion for the first time on May 28, 2007. It took the stock market an additional ten years to achieve the next trillion.
India is also among the main economies that have regularly delivered annualized returns of more than 10 percent over the last five years, ten years, fifteen years, and twenty years.
India's weight in the coveted MSCI Emerging Markets (EM) index is projected to rise from 18.3 percent to nearly 19 percent on May 31, potentially resulting in $2.5 dollars in FII inflows.
By 2027, India is expected to become the world's third-largest economy.
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