Tata group tops mcap losers' chart

Written by Pradip Kumar Dey | Mumbai | Updated: Aug 10 2011, 09:21am hrs
Tata group lost highest amount ( R44,406 crore) of wealth since the start of the year followed by the Reliance Industries group led by Mukesh Ambani and the ADAG group. Interestingly, the Bharti group rose up one notch in rankings in terms of market capitalisation to become the third largest promoter group in the country.

Wealth of Indias top 25 industrial houses decreased by 15% to R10.15 lakh crore on August 8 from the level of R1.94 lakh crore seen on December 31, 2010. Since the start of the year, Sensex is down 17.8%. Jagannadham Thunuguntla, Equity Head, SMC Capitals said : With the overall market conditions remaining nervous, understandably most of the companies have shed their market capitalisation and hence the promoters wealth.

At the start of the year, the top five houses according to mcap were Tata, Mukesh Ambani, Adani, Bharti and ADAG. But on August 8, 2011, the top five were Tata, Mukesh Ambani, Bharti, Adani and Sterlite.

Among the above 25 houses, Tata, Mukesh Ambani, Adani, Sterlite, ADAG, Om Prakash Jindal, DLF and Jaiprakash Gaur saw a significant decrease in their market capitalization. The mcap of ADAG , decreased by 37.6% from R75,783 crore on December 31,10 to Rs 47,262 crore on Aug. 8,11. Among the ADAG group companies, significant decrease in mcap was seen in the case of Reliance Communications (-39.4%).

Similarly, in the case of the Adani group, the total mcap figure of Adani group companies decreased by 10.5% to R91,169 crore on August 8 from R1.02 lakh crore on December 31, 2010. Among the Adani group companies, highest decrease in mcap was seen in the case of Adani Power (-29.8%). On the other hand an upward trend in terms of market capitalisation was witnessed in the case of Bharti, Godrej, Cadila and Dabur group. Among other groups studied, more than 15% decrease in mcap was seen in the case of Sterlite, UB, Vedanta Group and Essar.

Twenty one houses showed a decline in mcap on August 8 from the level of December 31,10. Though Tata Groups market capitalisation was at R2.38 lakh crore on August 8, declined by 15.7% from December 31, 2010 kept its first place intact in the group of top five during the study period.