India's 30 blue-chip companies, part of the stock market benchmark Sensex, may be minnows compared to their US counterparts, but they have created nearly three times more wealth for their investors this year so far compared to the American giants.
NEW DELHI: India's 30 blue-chip companies, part of the stock market benchmark Sensex, may be minnows compared to their US counterparts, but they have created nearly three times more wealth for their investors this year so far compared to the American giants.
The total market value of the 30 Indian companies is less than one-sixth of the same in the US.
Similar to the Bombay Stock Exchanges 30-share barometer index, the US market's benchmark index Dow Jones Industrial Average (DJIA) also has 30 companies.
However, cumulative market capitalisation of 30 Sensex companies stands at just about 668 billion dollar (Rs 26.3 trillion) against 4,158 billion dollar of the DJIA constituents.
But when compared in terms of the gain in market value since the beginning of this year, Indian blue-chips have outperformed the US giants by a wide margin.
Those listed in the US have together added 84.48 billion dollar to their investors' kitty in this period, while the same figure for the Indian market stands at a whopping 219 billion dollar.
Besides, the total gain recorded by the 30 DJIA companies is less than than the increase in the market cap of just two biggest Sensex gainers. Mukesh Ambani-promoted Reliance Industries has registered the highest gain of 61.3 billion dollar, followed by state-run power generation major NTPC with 26.8 billion dollar.
In the US, the highest gain has been recorded by energy giant ExxonMobil, whose market cap grew by 45 billion dollar.
Even in the percentage terms, the Indian stocks have appreciated by an average of about 37 per cent against just about seven per cent in the US.
This is despite the Indian market seeing a higher number of companies seeing a dip in their market value. In India, 11 Sensex companies have recorded a market capitalisation dip against 10 in the US.
Among the US firms, banking giant Citigroup recorded the biggest plunge of 108 billion dollar, while Home Depot, AIG and Altria Group saw an erosion of 25-40 billion dollar each.
The gainers among the US blue-chips include Microsoft (38.2 billion dollar), Coca-Cola (34 billion dollar), Merck & Co (32 billion dollar) and Intel (31 billion dollar).
Besides, AT&T, Hewlett-Packard, P&G, Verizon Communications, United Technologies, McDonald's, IBM and General Electric have also seen a surge of more than 10 billion dollar each.
In India, RIL has recorded the biggest gain of 61.3 billion dollar, followed by NTPC (26.8 billion dollar), L&T (22.1 billion dollar) and ONGC (20.4 billion dollar).
Bharti Airtel, Reliance Communications, ICICI Bank and SBI have also seen a gain of over 10 billion dollar.
Among the losers, IT giant Infosys saw the biggest erosion of 8.1 billion dollar, followed by other two software majors TCS and Wipro which saw a fall of 5.9 billion dollar and 5.1 billion dollar respectively.
Tata Motors lost about two billion dollar, while Cipla and Mahindra and Mahindra lost close to one billion dollar each. The losses have been below one billion dollar for five other companies -- Dr Reddy's Labs, ACC, Bajaj Auto, Hindustan Unilever and Satyam Computer.
The four IT firms -- TCS, Infosys, Wipro and Satyam -- together lost 19.9 billion dollar, forming a major portion of the total loss of 26.9 billion dollar by 11 companies.
Among the Indian blue-chips, RIL has the highest market cap of about 106 billion dollar, ExxonMobil is the most valued firm in the US at 465 billion dollars.
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