The Indian stock market performed well on Wednesday, as the total market capitalization of the companies listed on BSE topped the $5 trillion mark. This development was witnessed after around six weeks. Factors that contributed towards this include reduced geopolitical tensions and lower crude prices.

The positive momentum in the Indian stock market has continued for several days now. Positive developments such as peace negotiations between US and Iran, as well as lower oil prices have been instrumental in improving investor sentiment. It is believed that the current situation of low volatility is likely to improve risk appetite among investors. Moreover, the total market capitalization of BSE listed firms increased by more than 6% during the last four days of trade.

The small- and mid-cap stocks outperformed the major indexes. While Sensex gained just a little since April, small and mid-cap stocks provided healthy returns to the investors. The easing of tensions in the West Asia region will be quite beneficial for India.

Experts say that despite selling by foreign institutional investors, the market is holding up on the strength of domestic investors. If foreign investment increases further, the market could reach even greater heights. India's strong growth rate and the improved financial health of companies are also supporting the market. Corporate debt has declined recently, and their cash flow has increased.

Both the Sensex and Nifty were in the green during trading on Wednesday. The 30-share Sensex gained 0.53 percent to reach 77,219. Similarly, the Nifty rose more than 100 points to trade at 24,108. The Sensex has gained more than 2 percent in the past three days. Analysts believe that the banking, IT, and telecom sectors could drive the market higher in the coming days.