HDFC Group has become India's second biggest corporate house after Tatas in terms of private sector stock market valuation, pushing energy-to-retail conglomerate Reliance Industries group to the third position.
The financial services giant HDFC Group now commands a total market value of Rs 2.41 trillion – the second highest among all the private sector corporate houses after salt-to-software conglomerate Tatas' Rs 4.42 trillion.
In comparison, the market value of Reliance Industries group currently stands at about Rs 2.36 trillion.
The valuation of these groups have been derived after taking into account market values of all their listed companies.
While Tatas have nearly 30 listed entities, RIL group has got two (Reliance Industries Ltd and Reliance Industrial Infrastructure Ltd) and HDFC group has three – HDFC Ltd, HDFC Bank Ltd and Gruh Finance Ltd.
HDFC group has managed to replace RIL group as the second most valued group due to a surge in the share prices of its two key companies, HDFC Bank and HDFC Ltd, in the recent past.
In comparison, RIL shares have been under pressure.
In the past one month, HDFC Bank has gained nearly 7% of value, while that of HDFC Ltd has also grown by about 3%. On the other hand, RIL's valuation has fallen marginally in this time period.
Tata group's most valued company TCS has gained value in the past few days, but its share price is almost unchanged one a one-month basis. The other major companies from the group include Tata Motors, Tata Steel and Tata Power. All these four Tata group firms are part of the market barometer Sensex.
On the Sensex, HDFC group enjoys the highest weightage, followed by Tatas at the second, ITC at the third, RIL at the fourth and Infosys at fifth.
The combined weigthage of two HDFC group stocks on the Sensex (HDFC Ltd and HDFC Bank) is 14.45% currently, followed by Tatas (four stocks) with 11.19%, ITC's 9.52%, RIL's 8.87% and Infosys' 7.45%.
The Sensex weigthage determines the impact of a stock on the overall movement of the benchmark index and is determined by the company's non-promoter shareholding market value.
Incidentally, both Tatas and RIL group have lost value in the past one year, while that of HDFC group has increased.
Tata group's overall market value has fallen by about Rs 5,000 crore in the past one year, while the loss has been much larger at about Rs 47,000 crore for RIL group. In comparison, the HDFC Group has gained more than Rs 20,000 crore in market value in the past one year.