The country’s market capital has reached an 8 -month low due to the faster the selling in the Indian stock market. The total market valuation of all listed firms in the Bombay Stock Exchange (BSE) has reached Rs 398.65 crore, which is the lowest level since June 2024. In September last year, the country’s market capital has reached a record high of Rs 478 crore.
Since 30 September 2024, the benchmark Nifty 50 has fallen by 13 %, while midcap and smallcap indices have seen more. Since September 2024, the midcap and smallcap indices have fallen by 18% and 20% respectively. However, due to weakness in rupee, the impact on returns in terms of dollars has been slightly lower.
According to Bloomberg data, the country’s market capital is currently the lowest $ 3.99 lakh crore, which is the lowest since December 2023. In mid -July, this market cap reached its peak of $ 5.18 lakh million. Since January, the Nifty 50 has seen a decline of 5 %, while the US index Dow Jones has increased by 5 %.
Foreign portfolio investors (FPIs) have been selling massively in Indian shares since October last year. The reason for this is being considered lethargic in high valuation and economic growth. However, the increase in the US bond yield and the strength of the dollar is seeing further boom in selling.