When the Sensex touched 16,564.23 points on Friday, investor wealth had zoomed to Rs 50,18,477 crore (93%), way above Rs 25,99,426 crore recorded on February 7 last year. With this, about Rs 24,19,051 crore have been added to market capitalisation in a little more than 19 months.
Narayan SA, MD, Kotak Securities, said, The market was waiting for clarity from the Federal Reserve on interest rates. The half per cent cut has definitely helped all global equity markets go up.
The market capitalisation of A-group shares (192) also increased by 51.8% to Rs 32,87,075 crore on September 21, from Rs 21,64,879 crore on February 7, 2006. Among the A group shares, the highest increase in market capitalisation was seen in the case of Adani Enterprises (716.52%), followed by JSW Steel (288.15%), and Jindal Steel & Power (269.89%). The highest decline was registered in the case of Crompton Greaves (-51.75%), Arvind Mills (-44.25%) and Novartis India (-43.36%) during the period.
DR Dogra, ED, Care Ratings, said, The 50 bps cut by the Fed was taken as a pleasant surprise by the markets all over the world and the Indian stock market was no different. But high oil prices, inflation, the increasing deficit and the political stalemate remain the major worries.
The top three companies in terms of market capitalisation are: Reliance Industries (Rs 3,16,938 crore), ONGC (Rs 1,97,492 crore) and Bharti Airtel (Rs 1,74,225 crore).
Among these, Reliance Industries (215.71%) had the highest increase.