India’s stock market posted the highest monthly gain among the world’s ten largest equity markets in March, rising 9.4 per cent in dollar terms, according to the latest stock exchange data.
This marks the strongest rally in four years, following five consecutive months of decline.
As per the data, the total market capitalisation of all listed companies on the Bombay Stock Exchange (BSE) jumped to approximately $4.8 trillion, up from around $4.39 trillion at the end of February. This represents the largest monthly increase since May 2021.
India outperformed other major global markets, with Germany recording the second-highest rise of 5.64 per cent, taking its market capitalisation to over $2.81 trillion. Japan and Hong Kong followed with gains of 4.9 per cent and 4 per cent, respectively, while France, the United Kingdom, and Canada saw modest growth.
In contrast, the US—the world’s largest equity market—registered a 3.7 per cent decline, while Saudi Arabia’s market fell by 4.4 per cent.
Indian equity benchmarks Sensex and Nifty rose by 5 per cent each in March. The broader BSE MidCap and SmallCap indices performed even better, advancing 8.4 per cent and 9.8 per cent, respectively.
The rally was driven by value buying and increasing expectations that the Reserve Bank of India (RBI) may soon cut interest rates. Investor sentiment also received a boost after the US Federal Reserve indicated the possibility of two rate cuts in 2025.
India’s inflation rate has remained below the RBI’s medium-term target of 4 per cent, further fuelling hopes of a rate cut in the central bank’s upcoming April policy review.
Additionally, analysts anticipate fresh liquidity measures from the RBI. The central bank has already injected approximately ₹3 lakh crore into the banking system through various instruments, including repo auctions and open market operations.
Market experts advise that short-term traders may consider booking profits after the sharp rally, while long-term investors are encouraged to stay invested, as further upside potential exists if corporate earnings remain strong.
While market conditions may fluctuate, analysts recommend focusing on fundamental analysis rather than reacting to short-term market trends.
—IANS
