Promoters wealth of top 25 industrial houses decreased by 18.3% (R 2.29 lakh crore) to R10.26 lakh crore on September 22. During this period, Sensex fell -20.4% to 16,361.15 from the level of 20,561 reached on January 3 this year.
Among the promoter houses, ADAG, DLF, Om Prakash Jindal, Jaiprakash Gaur, UB, Wipro and Vedanta showed significant fall in market capitalisation since the start of the year. The market capitalisation of ADAG group, which fell the most, decreased by 47.1% from R75,339 crore as of January 3 to R39,881 crore on September 22.
Sanjeev Zarbade,VP, Kotak Securities said, ? The Fed says significant risks remain in place for the global economy and has decided against the QE3.This spooked the US markets?.He added, ?Given the negative global cues emerging from the US, Europe and Asian markets, the Indian markets also continued to lose ground.?
The recent fall has come as market felt that Fed’s $400-billion package may not be sufficient to solve the crisis. ?The rumours that European insurance company Lloyds is pulling out the bank deposits from the European banks added to the nervousness,? said DK Aggarwal, CMD , SMC Investments & Advisors. He said that current rupee weakness is expected to add up to the inflationary pressure on the economy. For instance, commodity imports could become costlier in rupee terms which in turn could be passed on to Indian consumers.
The lowest decrease among the promoters was registered in the case of Aditya Birla, Mahindra and Murugappa Group during the period of study. Promoter of Tata group showed 18.7% decrease in wealth as of September 22 while it was a 37.2% fall for the Vedanta Group.
Interestingly, an increase in promoters mcap was seen in the case of Bharti, Bajaj, Munjal Hero, Godrej, Cadila, Dabur and Gujarat Ambuja.