Markets Post ₹9.3 Trillion Gain in Investor Wealth at Start of FY27

Indian Stock Markets Start New Fiscal Year on a Strong Note

Indian stock markets began the new fiscal year on a positive note on Wednesday, driven by global cues. However, the momentum was short-lived as profit-booking capped gains. Despite this, investor wealth rose by ₹9.32 trillion, with the market capitalization of BSE-listed firms climbing to ₹422 trillion.

The Nifty 50 jumped 1.56% to close at 22,679.40, while the BSE Sensex climbed 1.65% to settle at 73,134.32. The improved sentiment was largely due to the easing of geopolitical tensions, with US President Donald Trump's comments that the US could wrap up its military campaign against Iran within the next two to three weeks.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Ashwin Patni, head of wealth management solutions at Julius Baer India, noted that the Nifty 50 has been largely flat over the past two years, indicating a sharp and meaningful correction. He added that any stability or positive news flow could support equities, but warned that uncertainty around the war and elevated crude prices could have a more pronounced impact on the economy and markets.

Brokerage firm Elara Securities (India) stated in a 30 March report that the Nifty trades at a 7% discount to its 10-year average price-to-earnings (P/E) ratio. This level has historically acted as a floor for valuations, and the report noted that the Nifty multiples rebounded from their 10-year rolling averages even during the Russia–Ukraine conflict.

Sudeep Shah, head of technical and derivatives research at SBI Securities, warned that the formation of a bearish candle on the daily chart signals a strong presence of sellers at higher levels. He identified immediate support for the Nifty at 22,550-22,500, and a breach of this level could drag the index lower to 22,300 and then 22,100 in the near term.

On the other hand, Kotak Institutional Equities sees value emerging in more parts of the market after the sharp correction across sectors and stocks over the past three-four weeks due to the ongoing Iran-US conflict. The firm's base case assumes the conflict lingers in the near term, and while valuations are still on the higher side for the bulk of consumption and investment names, the better reward-risk balance offers a buying opportunity.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The broader markets joined the party, with the Nifty Smallcap 250 surging 3.2% and the Nifty Midcap 100 advancing 2.2%. On the global front, MSCI Inc has announced that MSCI Greece indices will be reclassified from emerging market to developed market status in the May 2027 review, which could potentially redirect incremental flows toward markets like India.

However, Abhilash Pagaria, head of Nuvama Alternative & Quant Research, noted that the overall impact will be negligible and unlikely to move the needle for India or broader emerging markets. India has slipped into the laggards' bucket this year, with the BSE Sensex and Nifty 50 down roughly 16% and 13% respectively in 2026 so far, making them among the weaker performers globally.

Viraj Gandhi, chief executive officer of Samco Mutual Fund, stated that India has underperformed significantly over the last 24 months due to high valuations and for missing out on global themes like artificial intelligence (AI), semiconductors, and electronics. He added that the next phase of wealth creation will come from active stock-picking, spotting newer growth areas outside major indices, and staying invested through their growth phase.