On Wednesday, NSE's Nifty 50 index crossed the Rs 100 lakh crore market cap for the first time ever to as much as Rs 165 lakh crore after benchmark indexes of the Indian market soared for the eight consecutive sessions. BSE's 30-share Sensex's market cap rose above Rs 80 lakh crore.
The surge in market cap comes after Sensex rose nearly 1 percent to a new all-time high of 43,708.47 points on Wednesday, while NSE's Nifty 50 climbed to its record high of 12,769.75.
Global markets cheer vaccine progress
The domestic markets have been mirroring optimism in global markets fueled by the news of successful vaccine trials. Armed with a soon-to-be-available vaccine for the coronavirus pandemic, investors are betting on the global economy to make a V-shaped recovery.
On Monday, Pfizer Inc said its experimental COVID-19 vaccine was more than 90 percent effective in Phase 3 trials. Pfizer and German partner BioNTech SE said they expect to seek US emergency use authorization later this month.
Indian markets look attractive
Improvement in macro data and better-than-expected recovery in Q2 earnings of many companies have also provided support for the optimistic sentiment.
Further, an additional stimulus to support the US economy along with Fed Reserve keeping interest rates low is expected to shift funds from foreign investors to emerging markets like India than the US.
In MSCI's latest semi-annual review changes announced on Wednesday, the global index provider raised India's weightage in MSCI EM (Emerging Market) indices to 8.7 percent from the current level of 8.1 percent. MS expects India to see passive foreign inflows of US$2.5 billion based on this change.