The rally in the stock market and the recent appreciation in rupee have brought 51 new members to the elite billion-dollar market-value club, while doubling its overall valuation since October when the benchmark index had dropped below the 8,000-level.
The country boasts of as many as 144 companies with a market capitalisation of at least a billion dollar at present. The number represents a increase of 51 companies from just 93 in October 2008.
Interestingly, the cumulative market value of the club currently stands at about 900 billion dollars (Rs 42,34,171.25 crore) as on June 5, more than double of its value in October last year of 410 billion dollars (about Rs 20,41,029.8 crore).
However, when compared to the historic high achieved by the market in January last year, the billion-dollar club has shrunk in size and in value as well.
On October 27, the Sensex had plunged to a 52-week low of 7,697 points, hitting the investor confidence severely.
However, the size of this elite club has shrunk by 81 companies since January 10, when the Indian stock market benchmark Sensex had hit its all-time high of 21,206.77 points.
As of January 10, 2008, India hosted 226 companies with a market value of at least a billion dollar.
In value terms as well, the club had been at a high of 1,579 billion dollars (Rs 61,99,628 crore) on January 10.
The rise in the number of companies in the elite club since the October lows was caused by a movement in the stock market that has gained over 96 per cent in the past seven months and an appreciation in rupee value by 5.4 per cent.
Those having made into the elite club in June include Tech Mahindra, Financial Tech, Tata Tea, Indiabulls Real Estate and HDIL. However, firms like Jet Airways, CESC, India Infoline, Edelweiss Capital, Welspun Gujarat, Aban Offshore, Godrej Ind and Videocon moved out of this club.
In contrast, when compared with January levels, a steep fall of nearly 21 per cent in the domestic currency against the dollar has also contributed in shrinking of the league.
The rupee has plunged to a near-47.04 level on Friday against the US greenback, against its about 39.26 level on January 10. Besides, the Sensex is currently hovering near the 15,103.55-point level against a peak of 21,206 on January 10.
Meanwhile, the domestic unit was trading at 49.74 level on October 27, when the market had dipped to 52-week low.
While the club's top companies managed to hold onto their billion-dollar status, they saw sharp erosion in valuations.
The country's most valued firm Mukesh Ambani-led Reliance Industries has gained over Rs 1,78,966 crore in the past seven months, while state-run ONGC has also seen a surge in their wealth close to Rs 1.20 lakh crore (Rs 1.2 trillion).
Besides, realty giant DLF has lost more than Rs 35,481 crore (Rs 354.81 billion) and firms like Reliance Communications, Bharti Airtel, ICICI Bank and SBI made gains.
