Mumbai/ New York: The current capital market slump has taken a bigger toll on Indian stocks compared with the US, but investors’ losses in domestic bluechips are only half the wealth lost in American counterparts since the start of 2008.
Investors have lost close to $200 billion (Rs8.12 trillion) in the 30 stocks on the benchmark Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) so far in 2008. The loss has been much bigger at about $400 billion in the 30 bluechips on the barometer Dow Jones Industrial Average (DJIA) index on the New York Stock Exchange.
However, the collective loss in Sensex stocks was higher at about 26% against 8.7% in DJIA scrips.
Besides, as many as six companies in the DJIA pack—Wal-Mart Stores Inc., International Business Machines Corp. (IBM), E.I. du Pont de Nemours and Co. (DuPont), The Home Depot, Inc., Caterpillar Inc. and JPMorgan Chase and Co.—are trading with gains since the beginning of 2008, while only two Sensex companies—Hindustan Unilever Ltd (HUL) and Ranbaxy Laboratories Ltd—have managed to improve on their market values in the same period.
The collective market value of the 30 DJIA companies has dropped from about $4.5 trillion at the end of 2007 to about $4.1 trillion currently.
During the same period, market capitalization of the 30 Sensex firms has dropped from about $735 billion to $537 billion.
Among the DJIA stocks, the biggest loss of about 26.63% has been registered by Citigroup Inc., while Merck and Co. Inc., American International Group Inc. (AIG) and General Motors Corp. have lost more than 20% each.
Among the Sensex constituents, the biggest loss of about 52% has been recorded by Jaiprakash Associates Ltd, the newest member of this elite group.
Anil Ambani-promoted Reliance Energy Ltd and realty company DLF Ltd have lost 43% and 42%, respectively, while Reliance Communications Ltd (RCL), ICICI Bank Ltd, Larsen and Tourbo Ltd (L&T) and Tata Steel Ltd have shed more than 30% of their market values.
Reliance Industries Ltd (RIL), NTPC Ltd, Bharti Airtel Ltd, Bharat Heavy Electricals Ltd, Tata Consultancy Services Ltd, Infosys Technologies Ltd, Housing Development Finance Corp., Wipro Ltd, HDFC Bank Ltd, Grasim Industries Ltd, Hindalco Industries Ltd, Mahindra and Mahindra Ltd and ACC Ltd have seen their market values dipping by more than 20% in the same period.
Ranbaxy and HUL have gained close to 5% each while losses have been between 3% and 20% for others.
Among the DJIA stocks, the biggest gain of 10.8% has been recorded by world’s largest retailer Wal-Mart Stores, followed by about 8% by IBM, 3.8% by DuPont, 2.2% by Home Depot, 1.7% by Caterpillar and 0.55% by JPMorgan Chase.
While companies such as General Electric Co., The Coca-Cola Co., The Walt Disney Co., Johnson and Johnson, Bank of America Corp. and Alcoa Inc. have lost less than 5%, losses have been up to 10% for Procter and Gamble Co., 3M Co., Hewlett-Packard Co., McDonald’s Corp., Exxon Mobil Corp., Pfizer Inc., United Technologies Corp. and Chevron Corp..
AT&T Inc., American Express Co., Boeing Co., Miscrosoft Corp., Intel Corp. and Verizon Communications Inc. have lost between 10% and 20%.
In absolute value, Microsoft has lost the maximum of $63 billion while Citigroup and Exxon Mobil have lost more than $40 billion each.
Among Sensex companies, absolute loss in value has been the highest at about $26.34 billion for India’s most-valued firm RIL, followed by DLF at about $19.31 billion. Oil and Natural Gas Corp. Ltd, NTPC, RCL and ICICI Bank have lost close to $12.54 billion each.
Investor wealth has grown by close to $627 million in HUL and by about $226 million in Ranbaxy, while it has dropped among the rest.
Collectively, all the companies that were being actively traded on 2 April 2007, the beginning of fiscal 2007-08, have gained $285 billion in market value.