Index heavyweights drive up m-cap, post-Budget

Bombay Stock Exchange m-cap up Rs 88,842 cr to Rs 11,21,188 cr

The bourses have reacted favourably to the watering down of turnover tax with a 8.60 per cent gain in market capitalisation between the day the Union Budget was announced (July 8) and Friday. The market capitalisation of Bombay Stock Exchange was up by a whopping Rs 88,842 crore to Rs 11,21,188 crore.

While the free-float Sensex gained 6.86 per cent to 5170.32, all traded stocks appreciated 8.60 per cent. The Sensex heavyweights were major drivers, while stocks, with market cap between Rs 101 crore and Rs 500 crore, were major gainers at 11.14 per cent.

Oil and Natural Gas Corporation, Reliance Industries, Infosys Technologies, Tata Steel and Wipro accounted for 80 per cent gain in the Sensex. The Sensex gained 326.48 points, of which the five stocks contributed 263.08 points.

The mid-cap and small-cap stocks were major gainers in the rally as stocks with market cap between Rs 100 crore and Rs 500 crore appreciated 11.14 per cent.

The small cap stock's with market cap below Rs 100 crore, appreciated 10.07 per cent. Large cap stocks, Rs 1000 crore and above, gained 8.33 per cent, while stocks with market cap of Rs 500-Rs 1,000 crore, was up 9.50 per cent.

As many as 42 sectors outperformed the market with appreciation of over 10 per cent each. Financial institutions lead the sectoral gainers pack with 56.7 per cent rise in market cap. The market value of ferro alloys firms appreciated 56.4 per cent, while mining stocks appreciated 51.2 per cent.

Steel stocks shrugged off the impact of cut in custom duty and rise in excise duty with rising steel prices and healthy quarterly results. The stocks gained 38.73 per cent.

Companies with trading business- largely commodity exports, gained ground with an appreciation of 31.17 per cent.

Losers or underperformers in the current rally were closely related to the monsoon. The market value of personal care sector declined by 2.88 per cent, pesticides down 1.90 per cent, automobile down 1.83 per cent, hotels up 1.34 per cent and fertilisers gained 1.66 per cent.