Dalal Street loses over Rs five trillion in 5-day fall

Saturday, January 19, 2008

Dalal Street loses over Rs five trillion in 5-day fall

Five red days on the bourses and investors saw over Rs five trillion going down the drain, as an across-the-board selling pressure dragged down the benchmark Sensex by over 1,800 points.

The BSE's 30-share barometer index continued its slide on Friday, fifth straight day, with a fall of 687.12 points led by sharp losses in blue-chips like RIL, DLF, ICICI Bank, Reliance Energy and Reliance Communications.

The Sensex has lost 1,813.75 points in the last five trading sessions, while investors' wealth -- measured in terms of cumulative market capitalisation of all the listed companies -- has declined by Rs 5,21,310 crore.

The total market capitalisation stood at Rs 66,17,501.33 crore at the end of Friday's trading, as against Rs 71,38,810 crore before bourses began business this week on Monday.

The Sensex has dropped to 19,013.70 points from 20,827.45 points during this period. The loss for the week was about 2,000 points at today's intra-day low of 18,930.42 points.

Incidentally, the total loss of about Rs 5.2 trillion during the past five trading sessions is less than the demand generated by initial public offer of Anil Ambani group's Reliance Power.

The IPO, which opened four days ago on January 15 and was scheduled to close on Friday, has generated demand for shares worth well over Rs six trillion.

According to marketmen, profit booking in the secondary market to generate funds for Reliance Power IPO is a key reason for the ongoing plunge on the bourses. Prevailing weakness in global markets, driven by massive losses disclosed by financial giants like Citigroup and Merrill Lynch, is also putting pressure on the Indian market.

Country's top 10 most-valued companies accounted for more than Rs two trillion in the total loss of about Rs 5,21,000 crore during the week, while the two Reliance groups -- headed by Mukesh and Anil Ambani -- account for nearly one-fifth of the total loss seen on the bourses over the past five days.

The group headed by elder brother Mukesh, comprising India's most-valued firm RIL, Reliance Petroleum and Reliance Industrial Infrastructure Ltd, lost close to Rs 53,000 crore in its market value.

The Anil Ambani group lost close to Rs 39,000 crore. This group comprises of Reliance Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources Ltd and Adlabs Films.

Together the two groups have lost about Rs 92,000 crore in the past five days.

Among these eight companies, RIL suffered the biggest loss of about Rs 48,000 crore, taking its market value to Rs 4,06,948 crore. RIL is followed by ADAG's Reliance Communications with a loss of about Rs 19,000 crore, while Reliance Capital has lost close to Rs 10,000 crore.

While REL has lost about Rs 8,500 crore, MDAG's Reliance Petroleum saw its market value dropping by close to Rs 5,000 crore during the week. RNRL and RIIL lost about Rs 900 crore and Rs 100 crore respectively during the week.

Across the market, realty giant DLF recorded the second biggest loss after RIL at close to Rs 32,500 crore during the week, followed by NTPC (Rs 27,000 crore), ICICI Bank (Rs 21,600 crore) and ONGC (Rs 20,850 crore).

Among other major losers, Bharti Airtel saw an erosion of close to Rs 17,400 crore, MMTC lost about Rs 13,000 crore, NMDC about 4,300 crore and SBI about Rs 3,600 crore.

Together the 10 most-valued companies lost Rs 2,06,800 crore, taking their total market value to about Rs 19,25,000 crore at the end of today's trade.

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