Mumbai: The market capitalisation (m-cap) of corporate leader Reliance Industries has fallen sharply by Rs 24,750 crore during the past week to Rs 2,84,297.66 crore, following the CAG report which said the oil ministry and DGH have allegedly favoured the company.
With this, the market cap of RIL has slipped below the Rs 3 lakh crore mark. Shares of the company also took a hit and tumbled by 8 per cent to Rs 868.40 at the end of last week.
The bellwether stock has come under pressure after a recent report by the Comptroller and Auditor General (CAG) said the Oil Ministry and its technical arm, the DGH, allegedly favoured RIL by allowing it to double the development cost of its landmark KG-D6 gas field.
However, the company has denied any wrongdoing.
The country’s second most valued firm Coal India has also witnessed a loss of Rs 6,411.1 crore from its m-cap which stood at Rs 2,48,927.75 crore.
Oil & gas major ONGC’s valuation also dropped by Rs 1,539.99 crore to Rs 2,26,805.77 crore.
IT majors, TCS and Infosys Technologies, together shed Rs 20,876.16 crore from their combined valuations. The m-cap of TCS stood at Rs 2,17,347.06 crore, while that of Infosys was at Rs 1,58,715.26 crore.
IT companies were hit by the weak economic data in the US and continuous sovereign debt crisis in Europe. The US and Europe are the two key markets for the Indian IT companies.
Top lender SBI also saw its valuation declining by Rs 2,022.44 crore to Rs 1,40,402.64 crore, while ICICI Bank’s m-cap diminished by Rs 403.2 crore to Rs 1,18,824.07 crore.
In contrast, ITC, NTPC and Bharti airtel saw gains in their respective m-cap.
FMCG giant ITC added Rs 154.76 crore to take its valuation to Rs 1,48,455.45 crore, while power producer NTPC’s m-cap swelled by Rs 2,143.82 crore to Rs 1,47,346.37 crore.
Telecom player Bharti airtel’s m-cap advanced by Rs 2,449.4 crore to Rs 1,44,438.67 crore.
Meanwhile, the BSE benchmark Sensex fell by 2.17%, or 398.01 points, to end the week at 17,870.53.