May 2007 will go down in history as the month of trillions - after the trillion dollar mark touched by India’s GDP, and then the net worth of NRIs, it is now the turn of the Indian stock market to do so.

On 29th May, India’s bourses joined China and Russia as the third emerging market in Asia to cross USD 1 trillion in value. The BSE Sensex rose by 0.8%, hitting Rs. 14,508.21, a notch below its February 8 record.

The Indian rupee has been the star performer against the dollar this year amongst Asian currencies. The steady rupee and overseas investments have been instrumental in getting the stock market to achieve the feat of USD 1.01 trillion.

Average growth rates of 8.6% over the last 4 years and overseas funds purchasing equities worth USD 3.76 billion have supported the stock market. Industry has performed at an 11% rate, registering unparalleled profits.

The stocks of Hindalco Indutries, Bharti Airtel and Reliance Industries have multiplied several fold over the last year.

Rated against its performance in 2006, the Sensex, a 30-member Sensitive Index, climbed up by 34%, while the rupee gained by 12%, closing at Rs. 40.49 to the dollar on May 29, 2007, the highest since May 1998. As ICICI Bank, Tata Steel and DLF sell their shares this month, stock markets would leap by almost USD 10 billion.

Of this, USD 5 billion would come from ICICI Bank’s share sale, while DLF will offload USD 2.1 billion of stock .

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