Market cap: Tata group takes pole position on TCS show

Written by fe Bureau | Mumbai | Updated: Jan 1 2014, 23:41pm hrs
Some corporate houses managed to strengthen their position on the Street, while others have witnessed erosion in their market wealth in the year gone by.

Tata group has retained the title of the largest conglomerate in terms of market capitalisation with a combined market wealth of R6.81 lakh crore. The bulk of Tatas market wealth has stemmed from Tata Consultancy Services (TCS) which has seen its share price surge by 72.5% in the current calendar year.

In the year, the group saw a new chairman Cyrus Mistry taking charge of affairs after Ratan Tata decided to retire from all executive duties.

However, experts feel it is still too early to gauge impact of Mistrys appointment on the groups m-cap. He has to articulate his strategy for the group, said Saurabh Mukherjea, CEO, Instituional Equities, Ambit Capital.

Meanwhile, Mukesh Ambanis Reliance Group remains the second-largest group in terms of market capitalisation. The combined market worth of the group, which comprises of Reliance Industries (RIL) and Reliance Industrial Infrastructure, stood at R2.87 lakh crore as on December 30, 2013. However, RILs m-cap at R2.86 lakh crore shows that the petrochem and refinery giant is the primary driver of the groups market wealth.

The recent gas price hike allowed by the Cabinet Committee on Economic Affairs (CCEA) for RILs KG-D6 basin has been viewed as positive by brokerages. While the developments are positive for the complete gas E&P sector, RIL is the biggest beneficiary, followed by ONGC & Oil India, said Macquarie in a report. RIL scrip gained 4.71% post CCEAs announcement.

In the current calendar year, RILs share price has gone up by 6.64%, with its market wealth expanding by 5.61% to R2.86 lakh crore.

According to experts, investors have historically preferred buying into companies with strong promoters. Except for the market boom seen in 2006-07, identity of the promoters has been an important factor in investment decisions, added Mukherjea.

At the same time, Anil Ambani Group has lost its place among the top-10 corporates with largest m-cap. The groups total market wealth grew by only 1.39% to R68,549 crore in 2013.