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HDFC Bank becomes top-valued lender, TCS edges out ONGC again

Private sector player HDFC Bank today toppled SBI to become the country's most valued lender in terms of market capitalisation, while see-saw continued for the top slot in the entire market.

business Updated: Jul 27, 2012 20:30 IST

Private sector player HDFC Bank on Friday toppled SBI to become the country's most valued lender in terms of market capitalisation, while see-saw continued for the top slot in the entire market with software leader TCS edging out state-owned major ONGC yet again.

SBI's scrip was under pressure and settled 3.77 per cent lower, despite an upsurge in the stock market, while HDFC Bank gained by more than 3 per cent.

As a result, HDFC Bank's m-cap rose to Rs 1,37,554 crore making it the 6th most valued firm, as against SBI's 1,30,263 crore which slipped to the 7th slot, as per the BSE data.

Marketmen said this is the first time in recent years that HDFC Bank has become the country's most valued lender, a position that was once held by top private lender ICICI Bank which was edged out by the State Bank of India. For a brief period in 2007-08, HDFC Bank held the top slot among lenders.

"There is a stark contrast between private banks and public banks. HDFC's asset quality is very strong in comparison to SBI, despite such a large franchise," Bothra added.

Meanwhile, the game of musical chairs continued between TCS and ONGC for the No 1 slot on the BSE 30-scrip benchmark index Sensex.

TCS regained the coveted status of the country's most valued company in terms of market valuation within days of losing the top position to ONGC.

At the end of the session, driven by a spurt in share price, the TCS m-cap soared to Rs 2,39,906 crore, while ONGC's value was Rs 2,37,329 crore, following a marginal rise in its share price.

This month, there has been a change in the top slot thrice. On July 3, ONGC had pipped TCS; on July 16 ONGC had regained the numero uno position and then again today the Tata group flagship firm reclaimed the position.

"There is a tussle between TCS and ONGC for the prime slot but TCS remains the big outperformer. ONGC being a regulated company, despite having good asset the company can not command the valuation it should command," Ashika Stock Brokers Research head Paras Bothra said.

Market capitalisation of a listed company corresponds to the cumulative market price of all its shares. This figure changes daily with the change in the stock price.

Meanwhile, Reliance Industries Ltd (RIL), with m-cap of Rs 2,35,898 crore was at the third position, followed by Coal India (Rs 2,23,409 crore) and ITC (Rs 1,98,900 crore).

Among the top 10 on the Sensex, state-run NTPC was the eighth most valued firm with a m-cap of Rs 1,26,196 crore, while software service major Infosys stood at the ninth rank with Rs 1,23,393 crore and Bharti Airtel was in the tenth slot with Rs 1,16,584 crore in market worth.

First Published: Jul 27, 2012 20:28 IST