New Delhi: With the total wealth invested in Indian stock markets crossing the $1 trillion milestone, small investors’ share in the country’s five most valued firms is worth as much as $10 billion (Rs40,500 crore), according to information available with stock exchanges.Small investors are defined as those who can invest up to a nominal amount of Rs1 lakh in a company.
The combined market value of Reliance Industries, ONGC, Bharti Airtel, NTPC and TCS has soared past $210 billion and accounts for more than 20% of the entire $1 trillion wealth of investors across categories. The remaining 80% is spread over 4,800 publicly traded entities.
Despite owning so much in these companies, small investors remain tiny players on the bourses, as the majority of the wealth created is with promoters, institutional investors, and high-net worth individuals. In fact the share of the small guy in the top five companies is less than 5% of their combined market value.
Small investors own shares worth $6.7 billion in the country’s most valued firm Reliance Industries (RIL), which is nearly two-third of their total wealth in the top five.
TCs comes next with $1.4 billion of small investors’ wealth, while ONGC, Bharti Airtel and NTPC together add nearly $1.9 billion to their kitty.
Shares held by promoters worth close to $145 billion dollars in the top five companies, while total public holding in these companies — including the large and small individual investors as well as domestic and foreign financial institutions — is worth about $65 billion.
The small investors mostly hold little stake in big companies, while their holdings are relatively larger in smaller companies.
Stock market data shows that small investors hold an average of 9.5% stake in the 30-Sensex companies and 11.5% of the BSE 500 companies.
Their average holding across the market is close to 22%, but it does not translate into much wealth creation as their larger shareholdings are mostly in companies which have nominal market values.
The combined market value of the 30-Sensex firms stood at about $470 billion at the end of today’s trading, while the share of small investors in these companies is estimated to be about 7% at just over $35 billion.
Small investors’ wealth across the market is estimated to be about $50 billion.