India Leads Global Stock Market Gains with Highest Market Cap Surge in Four Years
India’s stock market witnessed the strongest rally in four years, recording the highest monthly gain among the world’s top 10 equity markets in March. The Indian market surged by 9.4% in dollar terms, marking a sharp rebound after five consecutive months of decline.
Mumbai: India’s stock market witnessed the strongest rally in four years, recording the highest monthly gain among the world’s top 10 equity markets in March. The Indian market surged by 9.4% in dollar terms, marking a sharp rebound after five consecutive months of decline.
Table of Contents
India’s Market Capitalisation Hits $4.8 Trillion
The total market capitalisation of all listed companies on the Bombay Stock Exchange (BSE) reached approximately $4.8 trillion in March, up from around $4.39 trillion at the end of February. This marks the largest monthly increase since May 2021.
Global Comparison: India Outperforms Other Major Markets
India outperformed other major global markets in March, with Germany in second place, recording a 5.64% rise in market capitalisation to over $2.81 trillion. Japan and Hong Kong followed with gains of 4.9% and 4%, respectively. Meanwhile, the US, the world’s largest equity market, faced a decline of 3.7%, and Saudi Arabia saw a drop of 4.4%.
Key Index Performance: Sensex and Nifty Rally
Indian equity benchmarks, Sensex and Nifty, both climbed by 5% in March. In addition, the broader BSE MidCap and SmallCap indices saw even higher gains of 8.4% and 9.8%, respectively, reflecting strong investor confidence.
Factors Driving the Rally
The market rally was driven by value buying, alongside growing expectations that the Reserve Bank of India (RBI) may soon lower interest rates. Investor sentiment improved further after the US Federal Reserve hinted at potential interest rate cuts in 2025.
Also Read: Bullet Train Project Setback: Ahmedabad’s Rail Traffic Paralyzed After Gantry Skids
India’s inflation rate remained below the RBI’s medium-term target of 4%, fuelling optimism that the central bank may announce a rate cut during its upcoming policy review in April. Analysts also foresee fresh liquidity measures from the RBI, which has already injected approximately Rs 3 lakh crore into the banking system through repo auctions and open market operations.
What Lies Ahead for Indian Markets?
Experts suggest that while short-term traders may look to book profits after the sharp rally, long-term investors should remain invested as further gains are possible, provided corporate earnings continue to show strength.
Although market conditions can be unpredictable, experts recommend focusing on fundamental analysis rather than reacting to short-term market fluctuations.
Key Takeaways
- India’s stock market recorded a 9.4% gain in March, leading the global markets.
- The total market cap of the Bombay Stock Exchange surged to $4.8 trillion.
- India’s growth outpaced other major markets like Germany, Japan, and the US.
- Investors are optimistic about potential interest rate cuts by the Reserve Bank of India.
