Indian blue-chip firms surpass US giants

Nov 19:   Sensex surpasses ‘DIJA’ as per earning percentage profits by creating a new record in the global market performance.

As Indian stock market is daily touching new heights of glory and making several new records in the Indian Stock Market History, it has also created a new record in the global market with India’s top 30 blue-chip companies listed in the stock market Sensex. It is also the indicator that the Bombay Stock Exchange (BSE) has surpassed the US stock exchange index ‘DIJA’ as per earning profits.

Dow Jones Industrial Average (DIJA) is similar to Sensex as it has also a pack of top 30 companies indexed in Dow Jones, the US market’s standard.

Though Indian companies are like nascent before the American giants in terms of capital and market value still Indian companies have earned $219 billion from BSE, while American giants have gained only $84.48 billion profits from their investors in Dow Jones. The DIJA’s gaining value is less then the joint earned profit of Sensex’s top two gainers.

Mukesh Ambani promoted Reliance Industries have marked the top gainer of $61.3 billion while NTPC has secured second position in the gaining with the worth of $26.8 billion. Thus the cumulative profit becomes higher than the DIJA’s total profit.

The total capital of all Sensex listed companies is approximately $668 billion, while DIJA’s components have $4,158 billion. It is the only sixth of total assets of DIJA’s firms.

This is a million-dollar–question that why the Indian companies have earned massive profits despite of having low market value and mass coverage? It is the faith of the investors including Foreign Indian Investors (FII) over Indian companies that have raised the market value of the companies and make the companies gigantic in the market performance.

The economic growth and government’s economic policy is also behind the enhanced capital of the Indian Stock Markets.

A total of 19 out of 30 blue-chip companies have outperformed this year since the beginnings of this fiscal and earned plenty of profit. The major gainers are L&T (22.1 billion dollar), ONGC (20.4 billion dollar), Bharti Airtel, Reliance Communications, ICICI Bank and SBI. The rest of the companies have gained less than $10 billion margin.

On the other hand, among US giant companies, ExxonMobil, the energy giant has gained highest profit by registering $45 billion. Besides this Microsoft Corporation Ltd. (38.2 billion dollar), Coca-Cola (34 billion dollar), Merck & Co (32 billion dollar) and Intel (31 billion dollar) have gained massive profits while AT&T, Hewlett-Packard, P&G, Verizon Communications, United Technologies, McDonald's, IBM and General Electric have earn a growth of more than 10 billion dollar margin each.

In terms of the percentage, Indian stocks have appreciated by an average of about 37 percent as against US stocks have gained just seven per cent margin in the same duration.

The numbers of Indian companies are also higher in losing profits. 11 Indian blue-chip companies have also seen depreciation as against 10 US blue-chip firms. IT sector became the major pack in dipping, including top major gigantic IT firms like Infosys, TCS, and Wipro. Infosys saw a fall of $8.1 billion followed by TCS and Wipro, which have seen the erosion of $5.9 billion and $5.1 billion in their profit as of last year.

The total loss of these three major IT firms is 74% portion of the total depreciation of remaining 8 companies. In the list of other major losers Tata Motors ($2 billion), Cipla and Mahindra and Mahindra ($ 1 billion each) and Dr Reddy's Labs, ACC, Bajaj Auto, Hindustan Unilever and Satyam Computer are among the lower top losers, which have lost less than $1 billion.

While in the US, banking giant Citigroup has recorded the biggest fall of $108 billion; Home Depot, AIG and Altria Group have also seen the dip of 25-40 billion dollar each.

In terms of market capital India’s top blue-chip company Reliance Industries has the highest asset of nearly $106 billion while in US, ExxonMobil is the most valued firm with an asset of $465 billion.

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