After foreign investors infused a record $18.5 billion into Indian equity in the December quarter, resulting in surge in valuations, five companies are set to end the year 2020 with a market valuation of over Rs. 5 trillion. Reliance Industries, TCS and HDFC Bank, this year have been joined by new entrants in the Rs. 5 trillion market-cap club -Hindustan Unilever and Infosys, with their scrip surging anyway between 9-68% this year.
List of Top 5 Valuable Indian companies with their market cap
|Reliance Industries||Rs. 12.64 trillion|
|TCS||Rs. 10.91 trillion|
|HDFC Bank||Rs. 7.69 trillion|
|HUL||Rs. 5.63 trillion|
|Infosys||Rs. 5.26 trillion|
After the Covid-19 led market rout in March of over 20%, Indian equities not only recovered the losses, but also scaled fresh highs in the month of November and December. Analyst at the brokerage firm HDFC Securities said, "The pandemic has created massive opportunities for some businesses. It has created enormous opportunities for pharmaceutical and chemical companies, the technology industry, for offshoring and remotely operating industries".
And if the current market rally extends to 2021 then there are at least three more companies that can make it to the elite club, including housing financier HDFC (M-cap of Rs. 4.44 trillion), Kotak Mahindra Bank (Rs. 3.88 trillion) and ICICI Bank (Rs. 3.54 trillion).
During the rally, some smaller companies also added to their m-cap, for instance- Asian Paints surged 48% during the year to Rs. 2.54 trillion, chasing on the m-cap of cigarette manufacturer ITC having a market valuation of Rs. 2.56 trillion.
"I would reckon the rise in Asian Paints market cap is the most striking in the large-cap space. Asian Paints trades at FY22 price to earnings at 72 times, while ITC at 17 times. Asian Paints is expected to see ₹3,500 crore profit, while ITC is likely to deliver ₹16,000 crore in FY22. Asian Paints now trades at a premium to Hindustan Unilever and Page Industries," brokerage Motilal Oswal Financial Services Ltd said in a note to clients.