Top 10 biz groups lost Rs 6 lakh crore of market wealth in FY12

Indian stock market saw close to $125 billion (over Rs six lakh crore) being knocked off its valuation in the last fiscal, with the ten biggest industrial houses accounting for over $25 billion of this loss.

In line with the overall downtrend in the markets, a majority of large business conglomerates saw their valuations taking a dip during the year ended March 31, 2012, but a few groups like Vedanta, Hero, Sun Pharma, Bajaj and Aditya Birla groups managed to improve their total market value.

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At the same time, a number of large business houses like Reliance Industries, GVK, Adani, DLF, GMR, Lanco, Jindal, Jaiprakash, Bharti and Wipro groups took a hit and the losses exceeded the market average in many cases, shows an analysis of market valuation changes for the fiscal 2011-12.

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In terms of cumulative market value of all listed firms, the total market wealth dropped by Rs 6,21,937 crore (Rs 6219.37 billion) during the fiscal -- from Rs 68,36,878 crore (Rs 6,8368.78 billion) to Rs 62,14,941 crore (Rs 62149.41 billion).

The losses in last fiscal came after two straight years of gains -- Rs 6.7 lakh crore (Rs 6.7 trillion) in FY11 and Rs 30.8 lakh crore (Rs 30.8 trillion) in FY10 -- and were the second highest in over a decade.

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During the last 13 financial years, the overall investor wealth of Indian markets has dipped only four times, but the losses were higher only during FY08-09 (Rs 20.5 lakh crore).

The losses stood at about Rs four lakh crore in fiscal 2002-03 and Rs 3.4 lakh crore (Rs 3.4 trillion) in the fiscal 2000-2001.

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In percentage terms, the dip in the investors' wealth, as also the market barometer Sensex, was about 10 per cent during FY11-12.

The Sensex lost over 2,000 points in the fiscal, while it fell by about eight points a day, on an average.

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Experts feel that headwinds from overseas markets, mostly fuelled by debt crisis in Europe, were the major triggers for the stock market plunge in India.

The country's economic growth rate also slowed down to near six% and the corporate profitability took a hit as well.

The total market value of ten biggest business houses dipped by about Rs 1.27 lakh crore (Rs 1.27 trillion) to Rs 14.8 lakh crore (Rs 14.8 trillion).

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Among the top diversified business houses, Tatas saw their market value dip by less than 1 per cent to close to Rs 4,50,000 crore (Rs 4,500 billion), while Mukesh Ambani-led Reliance Industries group dropped more than 28 per cent to Rs 2,46,000 crore (Rs 2,460 billion).

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Anil Ambani-led Reliance Group's market wealth dipped by about 17 per cent to Rs 76,000 crore (Rs 760 billion), but the losses were smaller than business houses like Lanco, Adani, GVK, RIL, DLF, GMR and Naveen Jindal groups.

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On the other hand, Vedanta group saw its market value rise by over 33 per cent to Rs 192,000 crore (Rs 1,920 billion), primarily due to addition of a new acquired entity Cairn India to its fold.

Among other major gainers, market value of Hero group, Asian Paints and Sun Pharma groups also grew by 28-29 per cent, while Kotak Mahindra, Bajaj and Aditya Birla groups also saw considerable jump during the fiscal.