Investors get 76% return from blue-chip cos

Investors in Sensex companies turned richer in 2009, raking in returns of over 76 per cent on their investments, as the collective market valuation of the 30-blue chip companies nearly doubled to Rs 26.49 lakh crore last year, the Economic Survey said on Thursday.

The stock market barometer Sensex gained over 76 per cent at 17,464.81 points in 2009, to become one of the best performers among leading global bourses, the Survey noted.

The cumulative market capitalisation of all the Sensex companies increased to Rs 26,49,482 crore (Rs 26.49 trillion), marking an increase of Rs 11.86 lakh crore from the 2008 level.

The market-cap of the 30-Sensex companies at the end of 2008 was at Rs 14,63,165 crore (Rs 14.63 trillion).

"Market capitalisation, which had reached record levels in 2007, recovered in the case of Nifty, the BSE Sensex and BSE-500 by end of December 2009," the Survey said.

At the end of December 2009, the market valuation of BSE -500 companies rose Rs 27.46 lakh crore to Rs 56.87 lakh crore. Besides, the valuation of 50 companies in NSE Nifty index rose Rs 14.82 lakh crore to Rs 33.14 lakh crore in 2009.

Besides, investors in Sensex companies gained 76.35 per cent in 2009, reversing the 52.48 per cent loss they suffered in 2008, the Survey said.

Although market volatility declined significantly in 2009, the Survey said the volatility of weekly returns of Indian indices was higher than that in 2008. India's benchmark index Sensex witnessed higher volatility of 5.12 per cent in its weekly returns in 2009, against 4.57 per cent in 2008.