New Delhi: Berkshire Hathaway Inc., a conglomerate under the leadership of American business magnate Warren Buffett, has achieved a historic milestone by becoming the first non-technology company from the United States to surpass the $1 trillion mark in market capitalisation.
The shares of Berkshire Hathaway experienced a significant surge, increasing by $3.96 on the New York Stock Exchange, to close at $464.59 per share on Wednesday.
This achievement places Berkshire Hathaway among a select group of six companies, predominantly from the technology sector, that have reached the $1 trillion mark. The list also includes Apple, Nvidia, Microsoft, Alphabet (the parent company of Google), Amazon, and Meta Platforms (the parent company of Facebook).
The shares of Berkshire Hathaway have seen substantial growth this year, appreciating by over 28 per cent on the New York Stock Exchange.
However, this accomplishment was overshadowed by a broader decline in the U.S. stock markets on Wednesday. Both the S&P 500 and the Nasdaq indices experienced a downturn, primarily attributed to investors engaging in profit-taking activities.
This market turbulence had a domino effect on Asian markets, where major indices also encountered selling pressure on Thursday morning.
In Asia, the Nikkei index in Japan fell by 0.45 per cent, while the Hong Kong Hang Seng index saw a decline of 0.55 per cent. The Taiwan Weighted Index emerged as the largest loser among the major Asian markets, witnessing a drop of 1.32 per cent.
In the Indian markets on Wednesday, the Nifty 50 index at the National Stock Exchange (NSE) reached a record high of 25,114.05 during the trading session.
The sectoral stocks of Information Technology (IT) were the primary contributors to this new record high. The prospects of a rate cut in the United States, coupled with purchases from foreign portfolio investors, bolstered the market.
The IT sector was leading the way in terms of sectoral performance, with major IT companies such as LTIMindtree, Wipro, and Infosys witnessing significant gains in the market. The stock market opened nearly flat on Wednesday, with the Nifty starting above 25,000 and the BSE Sensex opening at 81,800.
Over the past few trading sessions, the Nifty was confined to a narrow range despite positive global signals. "This marks a significant milestone, paving the way for a robust upward movement. Sector-wise, domestic cyclicals are expected to lead, with the IT sector showing signs of recovery through selective investments," stated Ajay Bagga, an expert in Market and Banking.
