The Indian stock market seems to have developed a liking for the US dollar vis-a-vis rupee -- it is taking half the time to double investments made in the greenback compared to that in the domestic currency.
An analysis of historic movements in the total invested wealth on domestic bourses show that its rupee value has taken 14 months to double, against less than eight months in case of the dollar value.
The total investors' wealth, measured in terms of total market capitalisation of all the listed companies, currently stands at Rs 63,85,475 crore or about $1,611 billion.
According to the market capitalisation data available with the bourses, it was near the half-way mark of the current rupee value at the end of September 2006, at Rs 31,85,680 crore -- taking 14 months to double.
In contrast, the market capitalisation's dollar value was at the half-way mark of the current level less than eight months ago in early April this year.
The differential growth period in dollar and rupee value is due to a sharp appreciation of close to 15 per cent in Indian currency compared to the US greenback over past one year.
Since the beginning of this year, the rupee value of total investors' wealth has grown about 78 per cent, while the surge in its dollar value is close to 98 per cent. Between January and November, investors have become richer by about Rs 27,61,000 crore in rupee terms.
In dollar terms, the gain is close to USD 800 billion, which includes only USD 620 billion because of the stock market surge. The rest is due to the rupee appreciation and had the local currency stayed at its 2006-end level, the dollar market cap would have been lower by $180 billion.