Mumbai: It’s not only the corporate houses or big and small investors who have burnt their fingers in the ongoing stock market turbulence — Government has also lost in excess of $100 billion due to fall in the share prices of publicly traded companies where it has promoter equity.
With investors losing a total of about $500 billion (over Rs20,00,000 crore) since the downslide began on the bourses earlier in January this year, the government’s stock market kitty alone accounts for over one-fifth of this loss at about Rs4,25,000 crore.
If the promoter shares held by various states and other government entities are also taken into account, the total government loss, although in notional terms, grows up to about Rs4,50,000 crore since 10 January, when the market benchmark Sensex hit its life-time high before embarking upon its ongoing southward journey.
However, when compared in percentage terms, the loss in the value of government’s holding is equivalent to the broader market losses of about 30% in this period.
The total investor wealth, measured in terms of market value of all the listed companies, had dipped to Rs50,51,648 crore currently, as against over Rs71,00,000 crore as on 10 January, according to data available with the bourses.
Out of these, the market capitalisation of 46 public sector companies, where the government holds at least 50% equity, has dropped by more than Rs5,33,000 crore, led by losses ranging between Rs60,000-75,000 crore for trading firm MMTC, power generation major NTPC and energy giant ONGC.
Besides, companies like NMDC, State Bank of India, BHEL, SAIL, Indian Oil, Power Grid Corp, Neyveli Lignite, Hindustan Copper and Power Finance Corp have also seen their market values plummeting by Rs10,000-40,000 crore each.