Nearly 500 firms gain in meltdown; add Rs60K crore to investor’s kitty

Nearly 500 firms gain in meltdown; add Rs60K crore to investor’s kitty

Mumbai: When the stock market fell like nine pins last week, eroding over Rs4 trillion from investors’ wealth in just three days, as many as 494 companies, including top five IT firms and some PSUs, added to their market value.

These companies collectively gained close to Rs60,000 crore in their market capitalization between 17-19 October and included TCS, Infosys, Wipro, Satyam and HCL Technologies.

A total of seven technology firms out of 12 on the BSE-IT Index added to the wealth of their shareholders, with their market capitalization rising by over Rs11,300 crore during this period, an analysis of stock market data shows.

However, while the turbulent conditions continued on the bourses for fourth consecutive day on 22 October, with volatile moves continuing with a downward bias, a number of IT firms as well as those having gained in the past three days were trading in the negative territory.

A number of state-run companies also defied the plunge on the bourses and saw their market cap rising considerably. These included NMDC Ltd, MMTC, Power Grid Corp, MTNL, Bank of Rajashthan and State Trading Co.

The benchmark BSE Sensex shed close to 1,500 points and the total market cap declined by about Rs4,02,000 crore (about 102 billion dollars) during the three-day period.

Other companies that saw their market value grow considerably during the three-day mayhem included Hindustan Copper, Dabur India, United Breweries, Bharat Forge, MphasiS Ltd, EIH and Mukesh Ambani group’s Reliance Industrial Infrastructure Ltd.

The market value of drug makers Sun Pharma and Nicholas Piramal as well as media firms Deccan Chronicle and Jagaran Prakashan also rose during these three days.

The IT firms seeing a rise in their market cap also included Firstsource Solutions, NIIT Technologies, NIIT Ltd, Hexaware, Infotech Ltd and HTMT Global.

There was an average increase of 6.2% in the market value of these 494 companies during this period, which collectively rose from Rs8,38,157 crore to Rs8,97,956 crore.

Among sectoral indices, BSE IT index was the only gainer, with the market value of its constituents rising by 1.5%, or close to Rs6,000 crore, to about Rs3,90,000 crore.

TCS added close to Rs3,800 crore to the wealth of its investors, Infosys gained Rs2,300 crore and Wipro’s market value rose by Rs2,100 crore. The gain was relatively small for Satyam (Rs700 crore), RIIL (Rs570 crore) and HCL Tech (Rs150 crore). Other gainers included PGCIL (Rs2,000 crore), Jai Corp (Rs2,900 crore), Hindustan Copper (Rs2,400 crore) and MTNL (Rs100 crore).

In percentage terms, a total of 47 companies saw a jump of over 15%, with DIC India, Spice Mobiles, Rajeshwari Foundation, Gajra Bevel, GSB Finance adding between 20-30% to their market capitalization.