The Hindu Business Line : Sensex m-cap growth: A pie in the sky for Indian public

On a day when the Sensex crossed 13K, the market-cap of the 30 constituent companies stood at more than Rs 16.5 lakh crore. This, in comparison to about Rs 12.5 lakh crore, when the year began, was a jump of roughly Rs 4 lakh crore, or almost a third.

The biggest share of the current market-cap pie is in the hands of Indian promoters. They hold 44 per cent; and the value of their stake has risen by more than 31 per cent in the last about ten months, from Rs 5.6 lakh crore to nearly Rs 7.5 lakh crore.

Foreign promoters have buta 4 per cent share in today's pie, but the value of their holdings, in terms of market capitalisation, has registered the maximum ascent: 84 per cent, from Rs 36,815 crore to Rs 67,715 crore. Foreign promoters' share in the total has increased by one percentage point, even as Indian promoters' share has seen a 3-percentage point fall, from 46 per cent to 43 per cent.

The `other' foreign category has seen the least growth in absolute value terms, of only 26 per cent, though accounting for 30 per cent of the present pie. This category comprises FIIs (foreign institutional investors), holders of American and global depository receipts (ADRs and GDRs), foreign nationals, NRIs (non-resident Indians), and OCBs (overseas corporate bodies).

Contrary to common thinking - that `foreign' holding has a bigger share of the growingly valuable Sensex market cap - one finds that the total shareholding by foreign promoters and other foreign entities has registered a meagre increase, from 32 per cent to 34 per cent, between January 1 and now.

No different is the story of the Indian institutions. Their share too has moved up but scantily, from 9 per cent to 10 per cent.

What about the Indian public? First, the good news: The market value of their holdings stands at Rs 1,57,976 crore, up 36 per cent from Rs 1,15,973 crore at the beginning of the year. The not-so-good news is that the share of the Indian public continues to swagger around a mere 9 per cent of the Sensex 30 market cap pie. Which means about 90 per cent and more of the Rs 4 lakh crore accretion to the Sensex market cap in the last three quarters is but a pie in the sky for the Indian public.

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