India's equity market capitalisation has reclaimed the $5 trillion milestone as investor sentiment improved following signs of easing tensions between the United States and Iran. The rally has lifted the combined market value of all companies listed on the Bombay Stock Exchange above the landmark level, reflecting renewed confidence in both domestic and global markets.

The recovery has been driven by a strong surge in broader markets, with mid-cap and small-cap stocks outperforming benchmark indices over the past several trading sessions. The aggregate market capitalisation of BSE-listed companies has risen more than 6 percent in four sessions, significantly outpacing gains in the benchmark Sensex.

Market participants attributed the rally to improving global risk appetite after reports of a diplomatic understanding between the United States and Iran reduced concerns over potential disruptions to energy supplies and global trade. Lower geopolitical uncertainty has encouraged investors to return to risk assets, including emerging market equities such as India.

Analysts also noted that India's relatively strong economic growth outlook, healthy corporate balance sheets, ongoing capital expenditure cycle, and resilient domestic investor participation continue to support valuations. These structural factors have helped Indian equities remain attractive despite periodic global volatility.

The latest milestone reinforces India's position among the world's largest equity markets and highlights the resilience of domestic capital markets amid changing global economic and geopolitical conditions.