Priyanka Tiwari
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India’s stock market saw a sharp increase in March, with the total market capitalization rising by 9.4% in dollar terms. This marks the highest monthly gain in four years, making India the top performer among the world’s ten largest equity markets. The growth follows five months of continuous decline.
Market Cap Hits $4.8 Trillion
As per exchange data, the combined market cap of all listed companies on the BSE reached $4.8 trillion, up from $4.39 trillion at the end of February. This is the strongest growth since May 2021.
Global Comparison: India Leads
India outpaced other major markets:
- Germany: Up 5.64% ($2.81 trillion)
- Japan: Up 4.9%
- Hong Kong: Up 4%
- France: Up 2.7%
- China: Up 2.2%
- UK: Up 2%
- Canada: Up 0.44%
In contrast:
- United States: Fell 3.7% ($59.13 trillion valuation)
- Saudi Arabia: Dropped 4.4%
Benchmark Indices Show Strong Momentum
Indian benchmark indices, Sensex and Nifty, gained 5% each in March. Broader indices performed even better:
- BSE MidCap: Up 8.4%
- BSE SmallCap: Up 9.8%
Reasons for the Rally
The recent rally is supported by:
- Value buying opportunities
- Expectations of interest rate cuts by the Reserve Bank of India (RBI)
- Positive signals from the US Federal Reserve, which forecasts two rate cuts in 2025
- Lower-than-expected CPI inflation, staying under RBI’s 4% medium-term target
Liquidity Support from RBI
Analysts expect additional liquidity support from the RBI. Since late 2024, the central bank has injected nearly Rs 3 lakh crore through:
- Variable Rate Repo (VRR) auctions
- Swaps
- Open Market Operations (OMOs)
Expert Insights on Market Outlook
Gaurang Shah, Senior Vice President at Geojit Financial Services, highlighted the market rebound:
- Nifty gained over 1,100 points
- Sensex climbed over 3,500 points in March
He advised:
- Short-term traders: Consider booking profits
- Long-term investors: Stay invested if earnings remain strong
According to Shah, the upcoming US stance on tariffs and RBI’s policy decision could impact short-term trends. He emphasized focusing on fundamentals over brokerage tips.
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