Investor wealth jumps 116% as Sensex soars

Those who had faith in the stock markets and stayed invested during the troughs can now see their wealth more than double. As the BSE Sensex (^BSESN : 17134.55 +7.71) crossed the 17,000-mark after a gap of 16 months, investor wealth has literally jumped 116.4% from the lows of March 9 this year.

Investor wealth as measured by the market capitalisation on BSE was pegged at Rs 26.40 lakh crore on March 9, 2009, when the Sensex ended the day at 8,160.40. Since, then the market has added around Rs 30.72 lakh crore in market capitalisation, which now stands at Rs 57.13 lakh crore.

Most of the gains in market capitalisation, however, have come from the large-cap group A shares. On a sectoral basis, industries like construction, retailing, banks, oil (drilling/allied services), tyres and sugar have been at the forefront of boosting overall market value. Lesser, but steady contributions came in from sectors like FMCG , electricity, telecommunications and cigarettes.

Harish Menon, executive director, H-Zone Capital, said, "With the global economic conditions showing early signs of revival, risk-aversion began to subside starting early 2009. High liquidity pool has benefited risky asset classes, including equities. Indian markets have also witnessed momentum rally leading up to this point and looks set to continue for some more time."

Market cap of A group shares constituted 85.8% of the total BSE market cap. The aggregate market cap of the BSE's A group increased by Rs 25.45 lakh crore to Rs 49.03 lakh crore on September 30, from Rs 23.58 lakh crore on March 9, 2009.

On the forefront of wealth building over March 2009 were eight stocks--Aban Offshore, Central Bank Of India, Welspun-Guj Stahl Rohren, JSW Steel, Housing Development and Infrastructure, Yes Bank (YESBANK.NS : 199.45 -5.6), Torrent Power and Bhushan Steel.

These saw their market capitalisation jump more than 350%. JSW Steel was the biggest gainer with scrip soaring 408.5%.

In the pecking order, Reliance Industries (RELIANCE.NS : 2174.35 -27.3) remains No 1 in terms of market capitalisation. It also increased its value by Rs 1.65 lakh crore in the process. ONGC (ONGC.NS : 1182.2 +10.2) kept the No 2 position intact and the company's value, as measured by the stock market, increased by Rs 1.08 lakh crore over the study period. Another PSU stock, NTPC, got the third slot adding Rs 30,673 crore to its market cap.