Improved operating margins rewarded

 The stock markets have reacted positively to the massive improvement in operational efficiencies of corporates during the first two consecutive quarters of fiscal 2003-04.

 The Sensex has appreciated over 70 per cent and the BSE-500 has gained over 80 per cent in the last six months.

 An analysis of the corporate results for the last two quarters shows that major business groups, including Reliance, Tatas, Birla, Sterlite, O P Jindal, Bajaj, Munjals, Mahindras, Hindujas and the TVS group have increased their operational efficiency in the both April-June 2003 and July-September 2003 quarters.

 The financial performance has led to a rerating in the stock markets with the scrips of these business groups posting handsome gains in the current bull run.

 Of the 35 major business groups, taken with a cutoff of an aggregate market capitalisation of over Rs 1,000 crore as on November 14,2003, as many as 12 houses have posted stock appreciation in excess of over 100 per cent and 16 have recorded appreciation between 50 and 100 per cent.

 The Anil Agarwal controlled Sterlite group has been the biggest gainer on the bourses with eight listed companies reporting a cumulative appreciation of 272 per cent.

 The operating profit margins (OPM)