India Inc's worth swelling on BSE

By agencies   |   Monday, 01 August 2005, 19:30 IST
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MUMBAI: The value of India Inc's investment in the stock market has swelled by $3.9 billion over the last 16 months. The book value of corporate sector’s investment in quoted securities was $4.3 billion on March 31, 2005. This included a fresh investment of $1.4 billion made during the year. The market value of this investment was $7.2 billion in March end this year. Riding high on the bull run in the stock markets, this kitty further appreciated by $1.02 billion taking their market value to $8.2 billion by July end. The rise in market value of their investment does not necessarily add to the bottom line of Indian Inc. Only when it books profits do the funds generated add to their bottom line. Moreover, most of these investments are in group companies. However, as their investments appreciated, the stock market valuation of these companies went up as the market priced in this factor, one analyst pointed out. This study is based on the market value of quoted investment of 705 companies on March 31, 2005. The data have been sourced from Capitaline Plus, the corporate data package maintained by the capital markets. Tata Steel is the biggest beneficiary of the stock market “boom” with its quoted investments of $71.1 million appreciating by over $431.8 million. Tata Steel has investments in group companies such as Tata Motors, Tata Power, Tata Investment and others. Bajaj Auto is the second biggest gainer of stock markets boom with its market value of its quoted investment rising by over $431.1 million. Bajaj Auto has total investment of $975.5 million. Reliance Industries is the third largest gainer in the list with its investment in group companies appreciating by $293.2 million. Tata Investment raked in $262.7 million through its quoted investments of $67.1 million. The company has investment in 21 sectors, with major investments being banks, cement, chemicals and fertilizers, energy, engineering, automobile, IT, oil and others.