Berkshire Hathaway Surpasses $1 Trillion Market Cap, Joins Elite Club

Berkshire Hathaway Inc., led by Warren Buffett, has become the first U.S. non-tech firm to hit a $1 trillion market cap. This milestone places it among six major tech giants. Despite this, U.S. and Asian stock markets saw a decline with mixed reactions in various indices.

Berkshire Hathaway Inc., the conglomerate helmed by renowned American businessman Warren Buffett, has achieved a historic milestone by becoming the first U.S. non-tech company to surpass the USD 1 trillion mark in market capitalization. On Wednesday, the company's stock price surged by USD 3.96, closing at USD 464.59 per share on the New York Stock Exchange.

With this achievement, Berkshire Hathaway joins an elite group of six other firms, predominantly from the technology sector, that have crossed the USD 1 trillion threshold, including Apple, Nvidia, Microsoft, Alphabet (Google's parent company), Amazon, and Meta Platforms (Facebook's parent company). Over this year, Berkshire Hathaway's stock has appreciated by over 28 percent on the New York Stock Exchange.

However, despite this landmark, broader U.S. stock markets experienced a downturn on Wednesday, with the S&P 500 and Nasdaq indices declining due to profit-taking by investors. This pressure extended to Asian markets, where significant indices faced selling pressure on Thursday morning.

In Asia, Japan's Nikkei index dropped by 0.45 percent, Hong Kong's Hang Seng index fell by 0.55 percent, and Taiwan's Taiwan Weighted Index saw the largest decline among major Asian markets, falling by 1.32 percent. In India, the Nifty 50 index at the National Stock Exchange (NSE) touched a record new lifetime high of 25,114.05 during trading on Wednesday.

The IT sector played a pivotal role in driving Nifty to its new high, with rate cut hopes in the U.S. and subsequent foreign portfolio investor buying also being significant contributors. IT sector index led the market with a 1.96 percent gain, with significant gains from major IT firms such as LTIMindtree, Wipro, and Infosys. The stock market opened nearly flat on Wednesday, with Nifty starting above 25,000 and BSE Sensex opening at 81,800.

Recently, Nifty has been trading within a tight range despite positive global cues. Ajay Bagga, a market and banking expert, noted, "Finally, it has broken through to fresh all-time highs. This opens up possibilities for a strong upmove now. Sector-wise, domestic cyclicals will lead the way while IT is coming back in favor of selective names."

(With inputs from agencies.)