Global Markets Near $5 Trillion Milestone as Bitcoin (BTC) and Ethereum (ETH) Lead the Charge

<ul>
  <li>The market capitalization of BSE-listed companies nearly reached the $5 trillion mark, closing at $4.997 trillion.</li>
  <li>The Reserve Bank of India (RBI) announced a significant dividend of ₹2.11 trillion to the government, double the expected amount.</li>
  <li>"Domestic retail investors using the MF route have been the driving force of the rally and would continue to absorb the FPI selling," said Swarup Mohanty, CEO of Mirae Asset MF.</li>
</ul>
<p><strong>India's stock market nears $5 trillion mark as RBI's hefty dividend boosts sentiment.</strong></p>
<h2><strong>Market Capitalization Approaches Historic Milestone</strong></h2>
<p>On Tuesday, the market capitalization of the 5,389 listed companies on the Bombay Stock Exchange (BSE) came tantalizingly close to the $5 trillion mark, closing at $4.997 trillion. This near-historic achievement was driven by a surge in mid-cap and large-cap stocks, reflecting robust investor confidence.</p>
<h3><strong>RBI's Unexpected Dividend Announcement</strong></h3>
<p>The Reserve Bank of India's (RBI) announcement of a ₹2.11 trillion dividend to the government significantly exceeded market expectations. This substantial payout, which is twice the anticipated amount, is expected to bolster market sentiment over the long term. Market experts believe that this development, coupled with the rise in market cap, could act as a catalyst for sustained market growth.</p>
<h3><strong>Performance of Key Indices</strong></h3>
<p>The all-India market capitalization rose by ₹77.45 trillion over 118 sessions, reaching ₹416.13 trillion. The BSE Midcap 150 index contributed ₹18.4 trillion (23.8%) to this increase, followed by the Sensex 30 with ₹16.18 trillion (20.9%), and the BSE Smallcap 250 with ₹6.73 trillion (8.7%). Together, these indices accounted for more than half of the total increase in market cap from November 2023 to May 2024.</p>
<h3><strong>Top Performing Stocks</strong></h3>
<p>Among mid-cap stocks, Trent, Cummins India, REC, PFC, and BHEL were the top performers. In the large-cap segment, Reliance Industries, ICICI Bank, SBI, Bharti Airtel, and M&M led the charge. Despite net selling by foreign portfolio investors (FPI) amounting to ₹25,716 crore this year, domestic institutional investors (DII) and proprietary traders have provided strong support with net purchases of ₹1.9 lakh crore and ₹37,578 crore, respectively.</p>
<h3><strong>Expert Insights</strong></h3>
<p>Swarup Mohanty, CEO of Mirae Asset MF, highlighted the role of domestic retail investors in driving the market rally. He noted that these investors, primarily using the mutual fund route, have been instrumental in absorbing FPI selling. Nirmal Jain, founder of IIFL Group, emphasized that the RBI's dividend would enable the new government to continue infrastructure spending without increasing the fiscal deficit. Jain also expects political and economic stability to benefit the markets in the long term.</p>
<h3><strong>Conclusion</strong></h3>
<p>The near-historic market capitalization of BSE-listed companies, coupled with the RBI's substantial dividend announcement, has set a positive tone for the Indian stock market. As domestic investors continue to drive market growth, the outlook remains optimistic, with expectations of sustained performance and stability in the coming months.</p>