The Hindu Business Line : Indian public adds Rs 42,000 cr in 13K rally

The amount - Rs 42,000 crore - is as good as the entire market cap of Hindustan Lever on January 1. But that is the value accruing to the Indian public between the beginning of the year and October 30, when the Sensex crossed the 13,000-mark.

Set against the total m-cap ascent by over Rs 4 lakh crore, achieved by the Sensex companies over this period, the addition to the share of the Indian public may look small. Yet, not a bad deal, considering that the proportion of the desi public's holding constitutes only about a tenth in the total market capitalisation of the Sensex companies.

Maximum contribution to the public's gain, in absolute terms, has been from Infosys: Rs 8,500 crore, or a fifth of the total. Reliance Industries ranks second, with a 15 per cent input into the value accretion kitty. L&T has added 7 per cent, while ITC and Bajaj Auto have each accounted for 5 per cent value increase. As a result, 51 per cent of the total Rs 42,000 crore increase in m-cap that the Indian public can lay claim has come from these five companies.

In terms of percentage increase, Satyam Computer Services ranks top, with almost 200 per cent, or a doubling of the Indian public's market cap to add nearly Rs 2,000 crore in value. BHEL ranks second, registering a 108 per cent increase. Infosys ranks sixth, with a 68 per cent growth; and Reliance Industries, in rank 16, with 38 per cent addition.

ITC, Tata Steel, Reliance Communications, HDFC, Ranbaxy Laboratories, ICICI Bank, State Bank of India, Hindustan Lever and Wipro have all achieved a growth rate of less than 36 per cent, the average. Market value of the Indian public's holding in NTPC and ONGC rose by 6 per cent and 2 per cent, respectively, in the last ten-month period.

The only company, in which the market value of the Indian public's holding has seen a negative growth is Hero Honda: Minus 13 per cent, matching with what the company's market cap has also suffered. Reliance Energy has seen a similar negative growth in its m-cap, yet the value addition for the Indian public has been 89 per cent. As if to offset, in the case of Reliance Communications, the company's m-cap increase is 126 per cent, compared to only 21 per cent for the public.

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