The year 2007 would easily be the best one for investors in the history of the stock markets in India. Investor wealth doubled to touch the Rs 36,15,919-crore mark over the last 249 trading sessions on the Bombay Stock Exchange.
The total BSE m-cap touched Rs 71,87,729 crore on December 31, 2007 from Rs 35,71,810 crore on January 2, 2007.
Also, the National Stock Exchange saw market capitalisation increase by Rs 31,82,240 crore (94.8%) to Rs 65,38,027 crore on December 31 from Rs 33,55,787 crore recorded on January 2, 2007.
A sectoral analysis shows that, while the top sectors like oil & gas in terms of market cap didn?t do much to write home about, the contribution of sectors like trading, steel, shipping, fertilisers, food processing, electric equipment, engineering, NBFC and electricity had been far higher in boosting the overall market cap value.
In contrast, IT was the only laggard and saw an erosion in market cap compared with January 2, 2007 figures. DR Dogra, ED, Care Ratings, said, ? A healthy GDP growth, investment in infrastructure along with a strong performance shown by the Indian companies led to a higher investor confidence. Overall, sovereign risk is reducing due to a stable government, a robust capital market structure and a strong regulatory framework. As a result, even international rating agencies have upgraded the sovereign ratings.?
Growth, however, was not segmented. The market capitalisation of the A group, comprising 213 companies, too, increased by 52.49% (Rs 17,58,895 crore) from Rs 33,50,980 crore on January 2 to Rs 51,09,875 crore on December 31, 2007.