MUMBAI: The stock market uptrend, which has brought back the benchmark Sensex above the 11,000-points level, has recovered as much as Rs 10,00,000 crore of investors wealth in less than two months.

However, the total recovery so far is less than one-fourth of close to Rs 45,00,000 crore lost in the sharp downturn that started in early 2008 and continued for more than a year till early-March this year.

At the end of the last trading session (April 24), the total investor wealth measured in terms of cumulative market capitalisation of all the listed companies in the country, stood at Rs 36,25,000 crore.

This marks an increase of about Rs 10,00,000 crore since March 9, when the Sensex was trading near its one-year low of 8,000 points and the total investor wealth had dipped to just above Rs 26,00,000 crore.

The benchmark Sensex has also gained more than 3,000 points since then and closed at 11,329.05 points in the last trading session.

However, the index is still about 10,000 points below its record high level of 21,206.77 points scaled on January 10, 2008. At that time, the total investor wealth had soared to a high of nearly Rs 72,00,000 crore.

Incidentally, the recovery of Rs 10,00,000 crore since March 9 has been mostly led by the top large-caps in the country, with India’s 25 most valued firms together accounting for nearly half of the total recovery.

In value terms, Mukesh Ambani-led Reliance Industries has alone added close to Rs 1,00,000 crore to investors’ wealth, with its market capitalisation rising to about Rs 2,81,000 crore. PSU major ONGC has added about Rs 41,000 crore, while Sunil Mittal-run Bharti Airtel has gained over Rs 30,000 crore.

PSU majors SBI and NMDC have also added more than Rs 25,000 crore each, while Anil Ambani-led Reliance Communications, engineering major L&T, ICICI Bank and MMTC have gained close to Rs 20,000 crore each during this period.

NTPC, Infosys, BHEL, ITC, TCS, HDFC, HDFC Bank, Reliance Petroleum, SAIL and Wipro have also added more than Rs 10,000 crore each to their market valuations.

While some analysts have cautioned that it could be a short-term rally and profit-booking at higher levels might again bring in a sharp downtrend, others have asserted that it could be the beginning of a long-running bullish phase.

Global equity research firm Elliott Wave International has gone to the extent of envisaging a milestone of as high as 1,00,000 points for the Sensex in the next 15 years. This would mean a rally of over 10-times from the level seen just a few days ago, when Sensex was toiling below 10,000-points.

Source: Economic times

Tags: bank, BEHL, crore, hdfc, INFOSYSY, itc, NTPC, sail, SUNIL MITTAL, WEALTH, wipro

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