Tata shareholders gain Rs3L crore

Source ;TNN, Sep 15, 2010, 02.11am IST




MUMBAI: The four leading business houses in India — the Tatas, RIL, Reliance ADA and AV Birla — have together made its shareholders richer by nearly Rs 5.3 lakh crore since March 2009, when the BSE sensex had dipped at its recent bottom near the 8,100-mark. While the total market capitalisation of BSE has risen by about Rs 45 lakh crore to over Rs 70 lakh crore now, these four business groups have contributed about 12% to the overall rise.

Seen individually, the house of Tatas with its 27 group companies have added nearly Rs 3 lakh crore, the two companies in the Mukesh Ambani-led RIL group have added a little over Rs 1.1 lakh crore in a little over 18 months. During the same period Kumar Birla-led AV Birla group have made its investors richer by about Rs 76,000 crore while Anil Ambani-led ADA group has added about Rs 51,000 crore to their shareholders' value.

Among the companies from these four groups, as one dealer with a domestic broking house pointed out, the ones that had gone for large-size buyouts during the previous years, have done exceptionally well after crisis.

For example, Tata Steel has seen its market cap rise nearly five times since March 2009. Tata Motors, that bought marquee auto brands Jaguar-Land Rover for $2.3 billion in 2008, have seen its market cap rise about eight-and-half times to over Rs 60,000 crore now. And AV Birla group's Hindalco, that bought global aluminium giant Novelis in February 2007 for $6 billion, has seen its market value rise by over five times to nearly Rs 36,000 crore now.

On Tuesday, the BSE sensex added another 139 points to close at Rs 19,347, its sixth consecutive session of gains. Although most of the domestic fund managers and brokers are keeping their fingers crossed and advising investors to be cautious, foreign fund managers are on a 'buy India' spree, meaning picking up any good stock that is available on Dalal Street.

Interestingly, market players said that one of the largest FIIs in India was short on Indian stocks recently and is currently on covering those positions at higher levels, and in turn, driving the market even higher.