Billion dollar market capital club reaches 200
By siliconindia | Wednesday, 21 November 2007, 08:00 Hrs
New Delhi: The Bull run on the Indian Stock market reflects a 40 percent rise in India's billion-dollar club. The number of listed companies that have a market capital of billion dollars or more crossed the double century mark. The number of such companies has risen from 148 on December 31, 2006 to 209 till November 2007. Some of the latest contestants to the 'billion-dollar' club include State Bank of Mysore (SBM), ABG Shipyard, Kalpataru Power Transmission, Sterling Biotech, Aurobindo Pharma, UCO Bank and Jubilant Organosys. The mid capital companies such as Triveni Engineering, Jagran Prakashan, Rashtriya Chemicals & Fertilisers, REI Agro and Gujarat NRE Coke has also crossed the billion-dollar mark. "The continued bull run has ensured that it's not just the large caps that have higher market caps. Small and mid-cap firms too are catching up with the trend. This trend is in line with the overall growth momentum of the market," said Dinesh Thakkar, Chairman and MD, Angel Broking. According to the data collated by financial research outfit Thomson Financial the number of companies with a market capital of $1 billion touched 100 in April 2006 and has crossed 200 since then. Though the 'bull' run has been largely positive for companies, experts warn that there may be a few stray cases of the scrip rising too high without strong fundamentals. Also there may be some companies where the management is not sound and the billion-dollar market cap may be largely due to momentum than fundamentals, added Thakkar.