Indian blue-chip cos create 3 times more wealth than US firms

Indian blue-chip cos create 3 times more wealth than US firms

New Delhi: India’s 30 blue-chip companies, part of the stock market benchmark Sensex, may be minnows compared to their US counterparts, but they have created nearly three times more wealth for their investors this year so far compared to the American giants.

The total market value of the 30 Indian companies is less than one-sixth of the same in the US.

Similar to the Bombay Stock Exchanges 30-share barometer index, the US market’s benchmark index Dow Jones Industrial Average (DJIA) also has 30 companies.

However, cumulative market capitalization of 30 Sensex companies stands at just about $668 billion (Rs26.3 trillion) against $4,158 billion of the DJIA constituents.

But when compared in terms of the gain in market value since the beginning of this year, Indian blue-chips have outperformed the US giants by a wide margin.

Those listed in the US have together added $84.48 billion to their investors’ kitty in this period, while the same figure for the Indian market stands at a whopping $219 billion.

Besides, the total gain recorded by the 30 DJIA companies is less than than the increase in the market cap of just two biggest Sensex gainers. Mukesh Ambani-promoted Reliance Industries has registered the highest gain of $61.3 billion , followed by state-run power generation major NTPC with $26.8 billion.

In the US, the highest gain has been recorded by energy giant ExxonMobil, whose market cap grew by $45 billion.

Even in the percentage terms, the Indian stocks have appreciated by an average of about 37% against just about 7% in the US.

This is despite the Indian market seeing a higher number of companies seeing a dip in their market value. In India, 11 Sensex companies have recorded a market capitalisation dip against 10 in the US.

Among the US firms, banking giant Citigroup recorded the biggest plunge of $108 billion, while Home Depot, AIG and Altria Group saw an erosion of $25-40 billion each.

The gainers among the US blue-chips include Microsoft ($38.2 billion), Coca-Cola ($34 billion), Merck & Co ($32 billion) and Intel ($31 billion).

Besides, AT&T, Hewlett-Packard, P&G, Verizon Communications, United Technologies, McDonald’s, IBM and General Electric have also seen a surge of more than $10 billion each.

In India, RIL has recorded the biggest gain of $61.3 billion, followed by NTPC ($26.8 billion), L&T ($22.1 billion) and ONGC ($20.4 billion).

Bharti Airtel, Reliance Communications, ICICI Bank and SBI have also seen a gain of over $10 billion.

Among the losers, IT giant Infosys saw the biggest erosion of $8.1 billion, followed by other two software majors TCS and Wipro which saw a fall of $5.9 billion and $5.1 billion respectively.

Tata Motors lost about two billion dollar, while Cipla and Mahindra and Mahindra lost close to one billion dollar each. The losses have been below $1 billion for five other companies — Dr Reddy’s Labs, ACC, Bajaj Auto, Hindustan Unilever and Satyam Computer.

The four IT firms — TCS, Infosys, Wipro and Satyam — together lost $19.9 billion, forming a major portion of the total loss of $26.9 billion by 11 companies.

Among the Indian blue-chips, RIL has the highest market cap of about $106 billion, ExxonMobil is the most valued firm in the US at $465 billion.