India’s billion-dollar club shrinks to half in value

India’s billion-dollar club shrinks to half in value


New Delhi: The ongoing turmoil in equity markets, coupled by the recent depreciation in rupee value, has forced out as many as 87 companies from the elite billion-dollar market value club, while shrinking its overall valuation by nearly half.

There were as many as 226 companies with a market valuation of at least a billion dollar as on 10 January — the day when the stock market benchmark Sensex scaled its life-time.

This has shrinked to just 139 companies now and its cumulative market value currently stands at about $796 billion (Rs 36,62,000 crore), against close to $1,600 billion (Rs 1,60,000 crore) on 10 January.

This diminution is primarily caused by a sharp plunge in the stock market that has lost nearly one-third of its value during this period. A steep fall of over 17% in rupee value versus US dollar has also contributed considerably in the shrinking size of this elite league.

The rupee has plunged to near 46 level against the US greenback, against its close to 39.25 level on 10 January. Besides, the Sensex is currently hovering near the 14,000-point level after peaking at 21,206.77 points on 10 January.

The rankings

Those having moved out of this club include Anil Ambani group’s Adlabs Films, Tata group’s Tata Tea, Naresh Goyal-led Jet Airways, biotechnology major Biocon, IFCI, Max India, HCL Infosystems, Patni Computer, Jain Irrigation, Bajaj Hindustan, Gujarat NRE Coke, Praj Industries, Madras Cement and India Cement.

Besides a number of real estate firms such as Ansal Housing, Omaxe, Sobha Developers and Peninsula Land and banks such as J&K Bank, State Bank of Mysore, Yes Bank, Syndicate Bank, UCO Bank, Central Bank aheir billion-dollar status, they have also seen a sharp erosion in their valuations.

The leader of the club, Mukesh Ambani-led Reliance Industries has lost close to Rs1,50,000 crore, while state-run ONGC has also seen a depletion in their wealth close to Rs50,000 crore.

Besides, realty giant DLF has lost more than Rs1,00,000 crore and companies like Reliance Communications, Bharti Airtel, ICICI Bank, MMTC, NMDC, SBI and larsen and Toubro have also registered huge losses.

While RIL and ONGC have retained their top two positions, the rankings have also changed in other top-ten positions. The two giants are now followed by Bharti Airtel, NTPC, MMTC, SBI, Infosys, NMDC, BHEL and L&T in the top ten, as against NTPC, DLF, Bharti Airtel, MMTC, NMDC, RCOM, ICICI Bank and SBI on January 10.

Before the start of the bear-run, these billion-dollar companies accounted for a whopping share of close to 85 per cent in the overall market value of the country. However, this share has now dropped to nearly 80 per cent.