India's billion-dollar club shrinks to half in value
The ongoing turmoil in equity markets, coupled by the recent depreciation in rupee value, has forced out as many as 87 companies from the elite billion-dollar market value club.business Updated: Sep 21, 2008 13:25 IST
The ongoing turmoil in equity markets, coupled by the recent depreciation in rupee value, has forced out as many as 87 companies from the elite billion-dollar market value club, while shrinking its overall valuation by nearly half.
There were as many as 226 companies with a market valuation of at least a billion dollar as on January 10 -- the day when the stock market benchmark Sensex scaled its life-time pas shrinked to just
139 companies now and its cumulative market value currently stands at about 796 billion dollars (Rs 36,62,000 crore), against close to 1,600 billion dollars (Rs 1,60,000 crore) on January 10.
This diminution is primarily caused by a sharp plunge in the stock market that has lost nearly one-third of its value during this period. A steep fall of over 17 per cent in rupee value versus US dollar has also contributed considerably in the shrinking size of this elite league.
The rupee has plunged to near 46 level against the US greenback, against its close to 39.25 level on January 10. Besides, the Sensex is currently hovering near the 14,000-point level after peaking at 21,206.77 points on January 10.
Those having moved out of this club include Anil Ambani group's Adlabs Films, Tata group's Tata Tea, Naresh Goyal-led Jet Airways, biotechnology major Biocon, IFCI, Max India, HCL Infosystems, Patni Computer, Jain Irrigation, Bajaj Hindustan, Gujarat NRE Coke, Praj Industries, Madras Cement and India Cement.