The Bombay Stock Market (BSE) crossed INR 100 Trillion (over USD 1.6 Trillion) market capitalization of Indian companies on 28 th November 2014 morning. At 12.10 pm, the market capitalization of BSE stood at Rs.1,00,16,898 crores (Highest on record). With BSE market capitalization of INR 100 Trillion (over USD 1.6 Trillion), it is ranked at 10th position globally.
BSE is the largest exchange in the world with respect to the number of listed companies. As many as 5,527 companies are listed on the BSE and the number of registered investors stands at 2.66 crore as on 28 th November 2014.
Another Indian exchange, National Stock Exchange (NSE) is ranked 11th in terms of market capitalization with its listed companies, while the number of firms is lower than that of the BSE firms.
The New York Stock Exchange (NYSE) is on the top with a total market cap of USD 19.1 trillion. It is followed by Nasdaq OMX, Japan Exchange Group of Tokyo, Euronext and Hong Kong Exchanges in the top five. The other exchanges ranked higher than BSE include Shanghai Stock Exchange of China, TMX Group of Canada, Shenzhen Stock Exchange of China and Deutsche Boerse of Germany at 6th, 7th, 8th and 9th positions, respectively.
The market cap of BSE is ranked higher than the stock exchanges like SIX Swiss Exchange, Australian Stock Exchange, Korea Exchange, BME Spanish Exchanges and Nasdaq OMX Nordic Exchange, among large global exchanges.
The BSE market capitalization of all companies had crossed INR 10 trillion mark nearly 11 years ago in 2003, while it has doubled from about INR 50 trillion five years ago in 2009.The 30 BSE companies considered the biggest companies in the country, now account for nearly 50 per cent or about INR 47 trillion of total investor wealth.
Tata Consultancy Services TCS, the country’s most valued firm and the only entity to have a market value of over INR 5 trillion, followed by state-run ONGC and private sector giant Reliance Industries with market caps of over INR 3 trillion each.
Those commanding market cap of over INR 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 INR 1 trillion each. Among these, ICICI Bank is very close to moving into INR 2 trillion club.
A further decline in oil prices (Organization of the Petroleum Exporting Countries-OPEC’s meeting failed to cut oil output from 30 million barrel since 2012) will help India to reduce the country’s large import bill and bring down inflation which could prompt the RBI to cut benchmark interest rates in the coming months. Foreign investors have poured in about USD 13.5 billion into Indian stock market this year, in a bid to benefit from the changing environment. These above factors led to the rally of the BSE and NSE index on 28 th November 2014.
Note – 1 Trillion = 1000 Billion, 1 Trillion = 1 lakh crores, 1 USD = 62 INR.