Investors witnessed an erosion of close to Rs 20 trillion from their wealth in the financial year 2008-09, with the Dalal Street crumbling under the pressure of the global economic downturn, while Reliance Industries emerged as the biggest loser in the period.
The combined market valuation of all the listed companies in the country dropped to Rs 30,86,075 crore (Rs 30,860.75 billion) on the last day of this fiscal as against Rs 49,72,953.37 crore (Rs 49,729.53 billion) on March 31, 2008, leading to a loss of over Rs 18,86,000 crore (Rs 18,860 billion) during the period.
The country's most valued firm corporate behemoth Reliance Industries, saw an erosion of close to Rs 89,460 crore (Rs 894.6 billion) from its market valuation during the fiscal ended March 31, 2009.
Interestingly, the Bombay Stock Exchange's benchmark index Sensex, which accounts for around 48 per cent of the market capitalisation of all the listed companies, has suffered a loss of nearly Rs 10,00,000 crore (Rs 10,000 billion) for the fiscal ending March 31, 2009.
Further, the benchmark Sensex's market valuation plunged to Rs 15,07,741.84 crore (Rs 15,077.41 billion) at the end of trading on Tuesday as against Rs 24,29,600 crore (Rs 24,296 billion) on March 31, 2008. Thus, the market meltdown has wiped off Rs 9,21,859 crore (Rs 9,218.59 billion) from the valuation of the 30 bluechip firms.
The biggest loser RIL is followed by NTPC and realty firm DLF with losses to the tune of Rs 88,794 crore (Rs 887.94 billion) and Rs 81,841 crore (Rs 818.41 billion), respectively.
Besides, in dollar terms the total loss of market valuation comes out be significantly more as the Rupee has depreciated from Rs 40.02 per dollar on March 31, 2008 to about Rs 50.86 at present.
The loss calculated in terms of the respective conversion rates at the two particular dates comes out to be as much as $636 billion.
Further, Foreign Institutional Investors have also played spoilsport for Indian equity markets as they have pulled out a whopping Rs 50,000 crore (Rs 500 billion) in FY' 2008-09 due to the liquidity crunch back home.
However, analysts predict elections are going to be the deciding factor for the way the domestic stock market would move forward in the next financial year as a stable government could prove positive for the Dalal Street.