Investor wealth nears record high level of Rs 75 lakh cr

The rally on Dalal Street today pushed up total investor wealth in the country to close to Rs 75,00,000 crore, a level last seen in January, 2008.

Total investor wealth in the country surged to Rs 74,42,480 crore today in tandem with a rally in the 30-share Sensex index of the Bombay Stock Exchange, which soared by 484 points to 20,687 points, its highest close in 33 months.

Investors wealth, measured in terms of the cumulative value of all the shares listed on the bourses in the country, had scaled a lifetime peak of a little over Rs 75,00,000 crore on January 8, 2008.

The Sensex achieved its highest ever close of 20,873.33 points on the same day, though its lifetime peak of 21,206.77 was recorded during intra-day trade on January 10, 2008.

In today's trade, investors' wealth grew by nearly Rs 2,00,000 crore.

There are close to 5,000 listed companies in the country, out of which shares of about 3,000 companies are actively traded. Investors' wealth is calculated on the basis of the market value of actively traded stocks.

Analysts said that a new record for total investor wealth could be set in a matter of few days, while the milestone of Rs 100,00,000 crore, or Rs 100 trillion, could also be surpassed soon, given the slew of listings lined up and the continuing uptrend on the bourses.

The Sensex has been on an uptrend for the past few months and has grown by over 18 per cent so far this year. The positive trend in the secondary market has also helped new companies firm up their plans to get listed.

Reports suggest that IPOs worth over Rs 50,000 crore are already in the pipeline, which would result in investors' wealth growing in excess of Rs 5,00,000 crore. In addition, the government's disinvestment target of Rs 40,000 crore for the current fiscal would further add to the overall market valuation, analysts said.

On account of the rally on the bourses, investors' wealth has registered nearly three-fold growth from about Rs 28,00,000 crore in March, 2009.

However, it is the promoters that have cornered the lion's share of the gains in a big way. Out of the overall gain of over Rs 46,00,000 crore during the ongoing rally, now in its 18th month, the value of shares held by promoters has grown by over Rs 25,00,000 crore.

On average, the promoters have an approximately 60 per cent stake in the Indian stock market, while retail investors' shareholding is pegged at less than 10 per cent and the remaining wealth is accounted for by institutional investors like FIIs, mutual funds, insurance companies and other financial institutions.

Currently, promoters' stakes in listed companies amounts to over Rs 44,00,000 crore, while retail investors' total shareholding is worth a little over Rs 7,00,000 crore.