To take your ideas to Policymakers, Join the Campaign of #PolicyPulse Write to feedback@policypulse.com

Ambanis, Adani biggest losers in Modi's 2 yrs

Investors of 15 top Indian corporate houses have lost 17 per cent of their wealth

Policy Pulse
Publish Date: May 24 2016 9:52PM | Updated Date: May 24 2016 9:52PM

Ambanis, Adani biggest losers in Modi's 2 yrs

 With only two days to go before PM Modi completes his second year in office, 'Acche Din' still looks far for equity investors.

 
According to data compiled by ETMarkets.com, investors of 15 top Indian corporate houses have lost 17 per cent of their wealth since Modi took over as prime minister two years back.
 
Currently, these 15 corporate houses have collective market value in excess of Rs 31 lakh crore, which is about one-third of BSE's current market capitalisation at Rs 96 lakh crore.
 
Combined market wealth of these corporate houses was at Rs 37.44 lakh crore the day Modi took oath as PM and Rs 36.5 lakh crore at the end of his first year in office.
 
Leading corporate companies like Adanis, Ambanis, Anil Agarwal's Vedanta, Jindals,  and Anil Ambani's Adag have seen up to 51 percent loss in their market values ever since Modi took office.
 
A fall in commodity prices worldwide and risk-off trade in emerging markets were key culprits behind poor show. Earnings growth, too, took a hit due to delay in key reforms on the government side.
 
Four listed companies of Gautam Adani-led Adani group have a total market capitalisation of Rs 57,150 crore as of today, down 51 percent from Rs 1,17,388 crore that three group firms enjoyed on May 26, 2014. 
 
Adag group saw a 44 percent dip in the group's market value to Rs 49,081 crore.
 
Public sector firms saw 26 percent reduction in their combined market cap to Rs 13.19 lakh crore in these two years. 
 
Among the commodity-focused companies, Mukesh Ambani-led Reliance group saw  15 percent reduction in market value, Jindal group saw a 31 percent squeeze, while Anil Agarwal's Vedanta group has seen its combined market cap fall 43 per cent to Rs 1.22 lakh crore. 
 
There has been a deceleration in the global economy in last two years with frequent downward revisions of growth forecasts by various rating agencies across the globe, Dharmesh Kant, Head of Retail Research at Motilal Oswal Securities, told ETMarkets.com
 
In the same period, the US has delivered better corporate earnings than most emerging markets, which have been plagued by negative earnings growth, largely due to a crash in commodities, he added.
 
The BSE Sensex gained a meagre 2 per cent during the period. Kant said the underperformance of the index can be attributed largely to global headwinds and to some extent sluggish pace of reforms, particularly those that can throw up instant results, such as the GST.