Mumbai: The Indian stock market may be growing at a faster pace than its American counterpart, but the US market has turned out to be better in valuation as well as returns for companies listed in both the countries.
For the 11 Indian companies listed in both US and Indian bourses, the market capitalization gain on US bourses was more than $1 billion higher than that on the domestic bourses here over the past week.
Besides, the total US market value of these companies is nearly $20 billion higher than their Indian valuation.
There are a total of 16 Indian companies listed in the US, but only eleven of them are listed on the domestic bourses as well.
Those listed on both the markets include four IT firms — Infosys, Wipro, Satyam Computer and Patni Computer— two banking giants (ICICI Bank, HDFC Bank), two Tata group firms (Tata Motors, VSNL), state-run MTNL, pharma major Dr Reddy’s Labs and Anil Aggarwal-promoted Vedanta group’s Sterlite Industries.
The total market capitalization of these 11 companies is about $135 billion in the US, against $115 billion in India.
An analysis of share price movements in the two markets shows their cumulative market cap grew by $6.5 billion in the US last week, against $5.3 billion at home.
This is despite the Indian stock market’s benchmark Sensex gaining a higher 3.1% in the week, against a 1.9% rise in the Dow Jones Industrial Average index, the barometer for the US market. Year-to-date also, the Sensex has gained as much as 45%, compared to DJIA’s 9.3% rise.
The higher return in the US market came despite all of them registering a positive return on the Indian bourses, while one of them — VSNL — gave a negative return in the US, with its market cap falling by $8.5 million.
The market cap of VSNL grew by $145 million on the BSE during the week.
For individual companies, Satyam Computer, HDFC Bank, MTNL, Dr Reddy’s Labs and Patni Computer recorded better gains in the US, while the rise in the market capitalizations of Infosys, Wipro, ICICI Bank and Sterlite were higher in India.
Infosys recorded the highest gain of $1.5 billion in the US, while ICICI Bank saw the biggest increase of $1.75 billion in India.
Besides these 11 companies, there are five more Indian companies listed in the US. However, these firms — three BPO firms Genpact, WNS Holdings and EXLService Holdings and two Internet companies Rediff.com and Sify — are not listed in India. These five companies have a total market capitalization of about $5 billion.