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India shining: Indian Blue chips outperform U.S. firms
By siliconindia
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Sunday, 18 November 2007, 20:30 IST
New Delhi: These Indian companies may be minnows when compared with their U.S. counterparts, but they have created almost three times more wealth for their investors this year. The total market value of the 30 Indian companies, part of the benchmark Sensex, is less than one-sixth of the same in the U.S.
Both the Bombay Stock Exchanges (BSE) and the U.S. market's benchmark index Dow Jones industrial average (DJIA) have 30 companies in their share barometer index. Their cumulative market capitalization of 30 Sensex companies stands at just about $668 billion against $4,158 billion of the DJIA constituents.
But when compared in terms of the gain in market value since the beginning of this year, Indian blue chips have outperformed the U.S. giants by a wide margin. Those listed in the U.S. have together added $84.48 billion to their investors' fund in this period, while the same figure for the Indian market stands at a mammoth $219 billion.
Besides, the total gain recorded by the 30 DJIA companies is less than the increase in the market capital of just two biggest Sensex gainers. Mukesh Ambani-promoted Reliance Industries has registered the highest gain of $61.3 billion, followed by state-run power generation major NTPC with $26.8 billion. In the U.S., energy giant ExxonMobil recorded the highest gain, whose market capital grew by $45 billion.
Even in the percentage terms, the Indian stocks have appreciated by an average of around 37 percent against just about seven percent in the U.S. This is despite the Indian market seeing a higher number of companies seeing a dip in their market value. In India, 11 Sensex companies have recorded a market capitalization dip against 10 in the U.S.