Investors gain Rs 25 lakh-cr in just over 5 months

Investor wealth has increased by over Rs 25 lakh crore (Rs 25 trillion) in just over five months from the beginning of the current financial year, on improving sentiments in the domestic and global markets.

According to an analysis of the valuations for the period (April 1-September 18), the combined market capitalisation of all the firms listed on the Bombay Stock Exchange increased by Rs 25,02,749 crore (Rs 25,027.49 billion) or nearly 80 per cent.

Analysts believe the rise in investor wealth has been due to the upbeat market sentiments on indications of economic recovery globally.

"The markets have given a healthy return on the back of positive mood among domestic and international investors," SMC Global's vice president Rajesh Jain said.

While, the 30-share benchmark index Sensex has given a healthy return of nearly 70 per cent to hover around 16,700 level in September against 9,900 level in April.

The Sensex companies, which account for about 45 per cent of the total market capitalisation of all the companies, saw its combined market valuation rise by over Rs 10,00,000 crore (Rs 10,000 billion) in the reviewed period.

The combined market capitalisation of the 30 blue-chip stocks rose to Rs 25,31,831.55 crore (Rs 25,318.31 billion) on September 18 from Rs 15,31,252.34 crore (Rs 15,312.52 billion) on April 1.

However, the total turnover of the Sensex companies declined to Rs 1,597.42 crore (Rs 15.97 billion) on September 18 from 1,705.52 crore (Rs 17.05 billion) on April 1.

Jain further added that the decline in the volumes is because of less participation of retail investors in the markets, which shows the run is mainly on account of institutional money, both domestic and international.

Meanwhile, foreign investment into the Indian stock markets are likely to cross $10 billion-mark by the end of this month as a hefty $9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far this year.