Indian cos losing more on US bourses
Going to Big Apple no more seems to be a value-adding proposition for Indian companies as those listed both on the American and Indian bourses have seen an additional erosion of about 7 billion dollars in their US market capitalisations in the ongoing downslide.
Eleven Indian companies, which are listed both in the local stock market and on the NYSE or Nasdaq in the US, have seen their collective market capitalisation in India plunge by over Rs 1,55,000 crore (about $48.7 billion) since January 10, after which the downslide began on Dalal Street.
In comparison, these firms have seen their Wall Street valuations, based on market cap figures in the US bourses, dipping by a higher $55.7 billion in the same period.
These companies include four IT companies Infosys, Wipro, Satyam and Patni Computer, two largest private sector lenders ICICI Bank and HDFC Bank, Tata group's Tata Motors and Tata Communications, billionaire Anil Agarwal-led Vedanta group's Sterlite Industries, public sector telecom major MTNL and pharma major Dr Reddy's Labs.
The Indian stock market benchmark Sensex had scaled its life-time high of 21,206.77 points on January 10, but has lost close to 8,000 points since then in a bearish market.
While the US market has also been broadly on a downslide in this period, the rate of fall has been relatively less than the Indian bourses.
Still, the securities of Indian companies trading in the US market has mostly seen a bigger fall than not only in the US broader market but also the fall in their own valuations in the Indian market.
The US market valuation of these 11 companies stand at about $95.6 billion, down from $151.3 billion on January 10.
In comparison, the Indian market valuation of these companies stand at about Rs 3,95,000 crore (about 91.5 billion dollars), down from about Rs 5,50,000 crore ($140 billion) as on January 10.
A sharp depreciation in the Indian currency versus the dollar has also contributed to a bigger fall in their local market valuations in the US currency terms.
For example, Infosys has seen its Indian market valuation in rupee terms actually rising by about Rs 9,000 crore, but its dollar-mcap has fallen marginally in this period.
For Satyam, both the rupee and dollar market cap in India has gone up in this period.
The rupee was trading at 39.26 to a dollar on January 10, but has now depreciated to about 43.14.
While all the companies have seen their US market values dipping in this period, Satyam is the only that has seen the dollar value of its Indian market value rising in this period.
Among the individual companies, ICICI Bank, HDFC Bank, Infosys, Tata Communications and Tata Motors have seen a larger erosion in their US market capitalisations as compared to that for the Indian market.
However, companies like Wipro, Sterlite, Patni, MTNL and Dr Reddy's have seen almost similar fall in both the US and Indian market capitalisations.
The loss has been highest at over $25 billion for ICICI Bank in the US, while in India it is over $22 billion. Besides, HDFC Bank and Sterlite have also seen about $9 billion and $7 billion loss in their US market values.
Infosys, Satyam, Patni Computer and Dr Reddy's have, however, seen a loss of less than $one-billion, which range between $100-400 million.