Ambani brothers - making investors happy

The Ambani brothers may well be cracking the whip on the stock market bulls that have lifted investors’ wealth by Rs five trillion, 20 per cent of which is accounted for by their own companies.

The ongoing surge in the stock market has seen the market value of all Indian companies growing by about Rs 20 trillion since the beginning of the current fiscal -- out of which about Rs four trillion has been contributed by the companies controlled by the two Ambani groups.

Moreover, this gain of about Rs four trillion in market value is nearly double of the additional wealth created by the companies controlled by three other entrepreneurs who make up the list of five richest businessmen in India.

Mukesh Ambani group companies, led by the country's most valued firm Reliance Industries, have contributed close to Rs 2.5 trillion to the rise in investors' wealth, followed by about Rs 1.5 trillion by the ADA group.

In comparison, Bharti Airtel, led by Sunil Mittal, has seen its market value soaring by over Rs 75,000 crore in the same period, while KP Singh-led realty giant DLF Ltd has added close to Rs 1.5 trillion to the investors' kitty. DLF was not listed at the beginning of this fiscal.

Wipro, led by the fifth richest Indian Azim Premji, has actually seen its market value declining by Rs 3,800 crore.

The market benchmark Sensex has gained about 6,000 points or about 45 per cent during this period, while the total investor wealth has grown to over Rs 58 trillion from just about Rs 38 trillion at the end of last fiscal.

The country's ten most valued firms -- including PSUs ONGC, NTPC and BHEL besides RIL, Reliance Comm, Bharti Airtel, DLF and ICICI Bank, have contributed a total of about Rs 9 trillion to the gain in investors' wealth.

While the stock market today closed on broadly flat note with the Sensex ending seven points down at 19,051.86, a number of companies from the two Reliance groups rose, with a few even managing to scale new peaks.
RIL dropped 0.6 per cent to Rs 2,648.30; RPL settled 1.5 per cent up at Rs 183.74 after hitting a peak of Rs 185.

Reliance Industrial Infrastructure Ltd also rose 5 per cent to an all-time high of Rs 2,384.90.

In the Anil Ambani group, Reliance Capital rose four per cent to Rs 1948.20 after scaling a peak of Rs 1970, Reliance Communications ended 1 per cent up at Rs 760.65 and hit a peak of Rs 778.50, Reliance Energy rose 3.1 per cent to Rs 1904.40 and scaled a record high of Rs 1959.

Reliance Natural Resources Ltd (RNRL) and Adlabs Films ended lower. Shares of Bharti Airtel and Wipro also ended lower, while that of DLF gained about 2.4 per cent.

The combined market value of the ten biggest companies in terms of market cap currently stands at about Rs 18 trillion, which is nearly double of about Rs nine trillion at the end of the last fiscal.

The collective investor wealth in all the companies controlled by the five richest Indians has grown to about Rs 11.7 trillion from about Rs 5.5 trillion at the beginning of this fiscal, while that of all the companies controlled by the two Ambani brothers has grown to about Rs 7.3 trillion from about Rs 3.35 trillion.

Among individual companies, RIL is the biggest gainer with about Rs 1.9 trillion, while Reliance Communications and Bharti Airtel have seen a gain of Rs 70,000-75,000 crore each. RPL has added close to Rs 50,000 crore, while Reliance Capital and Reliance Energy have each gained about Rs 30,000 crore each.