The opening bell is the number of Indian capital markets, which will see one of the most explosive displays of wealth creation in history on today. Over that shocking 15-minute period after market launch, investor wealth which is the total market capitalization of all listed companies on the BSE shot up to a jaw-dropping ₹13 lakh crore ($155 billion).
The triggering event behind this financial tsunami was the midnight announcement of a landmark trade deal between India and the United States. President Donald Trump’s decision to reduce reciprocal tariffs to 18 percent and scrap the 25 percent Russia-based oil penalty set off a buying frenzy that saw the BSE Sensex rocketing more than 4,200 points in early trading.
The Bull Run Begins: “Trump-Modi.”
The Nifty 50 soared past its 26,300 levels and hit more recently in a euphoria. Part of the “windfall” came from a massive re-rating of Indian blue chip stocks, especially those with heavy exposure to the U.S. market. Market analysts said the speed of the rally was exacerbated by global “fear of missing out” (FOMO).
“We’re seeing a once-in-a-decade re-rating,” said a head of research at a leading Mumbai brokerage. To witness ₹13 lakh crore increased to the m-cap in 15 minutes is testament to the enormity of under-ownership seen by FIIs in the recent past.”.
Leaders in the Wealth Surge
The ₹13 lakh crore net windfall was distributed among sectors, but several movers led the way:
- Reliance Industries & Adani Group: Some megacorps soared in market cap to erase oil-related penalties to enable quick expansion with great scale on a global scale.
- The IT “Big Three”: TCS, Infosys and HCL Tech gained billions of dollars to the group's value as the 18% tariff cap provided margin relief for service exports they desperately require.
- Banking Giants: Massive buying in HDFC Bank and ICICI Bank after deal is seen as it will make Rupee strong, lowers foreign capital cost:
What Made the “15-Minute” Miracle Possible
Traders cite three technical factors behind that quick surge in wealth:
- Short Squeezing: Wall Street’s Bearish bets made over the weekend were “incinerated” as the market gapped up shorts must cover at all price levels.
- FII Re-entry: Foreign Institutional Investors who had spent caution poured billions into Indian equities in the first hour of trade, they’re said to have gone.
- GIFT Nifty Cues: A 800-point advance in the GIFT Nifty before the home market open had set the stage for a blockbuster opening.
The Road Ahead
Despite a sentiment-based and short-covering up surge in early weeks, building on this wealth over time will no doubt depend on the ability to deliver the $500 billion “Buy American” promise of New Delhi. But for the millions of retail investors in India, today is a "Super Tuesday" that has drastically changed the fortune of the fortunes of the Indian stock market.
