₹28 lakh crore gone! Ambani, Adani to Tata — how stock market crash hit India Inc. titans in last 5 months

The sharp selloff in the Indian stock market has significantly eroded the market capitalisation (m-cap) of major Indian business groups over the past five months.

According to data from Capitalmarket, an equity research platform, the top 10 market capitalisation loser groups of India Inc. have collectively shed nearly ₹28 lakh crore since the market downturn began on October 1.

The total market capitalization of BSE-listed firms has declined by approximately ₹90 lakh crore, dropping from ₹474 lakh crore on September 30 last year to ₹384 lakh crore on March 3 this year.

Data show Tata Group stocks lost over ₹7.70 lakh crore in market capitalisation between October 1 and March 3. Adani Group stocks followed with a decline of ₹5.75 lakh crore, while Mukesh Ambani-led group stocks shed ₹5.3 lakh crore in the said period.

Bharti, Birla, Bajaj, and L&T are also among the top private business groups that have suffered the highest market capitalisation erosion in the recent stock market crash.

Top losers in terms of m-cap

Among the Tata Group stocks, TCS eroded nearly ₹2.8 lakh crore m-cap, while Tata Motors, Tata Steel and Titan Company have erased ₹1.30 lakh crore, ₹37,388 crore and ₹65,612 crore, respectively, since October 1.

Among the Adani group stocks, flagship firm Adani Enterprises lost ₹1.13 lakh crore. However, the biggest loser in terms of m-cap erosion is Adani Green which erased ₹1.74 lakh crore. Adani Ports and Adani Power erased ₹85,412 crore and ₹66,744 crore, respectively.

Among Mukesh Ambani-owned firms, Reliance Industries erased ₹4.14 lakh crore, while Jio Financial's m-cap fell by ₹95,140 crore during the market crash from October 1.

Stock market crash

A confluence of headwinds hit the Indian stock market hard last September when the domestic market was at record highs.

Foreign institutional investors started offloading Indian equities in bulk due to stretched valuations, weak earnings of India Inc., signs of economic growth losing momentum, falling rupee, rising dollar, elevated US bond yields, and concerns over a major trade war after Donald Trump returned as the US President.

Nifty 50 hit its all-time high of 26,277.35 on September 27 last year. The index has plunged 4,158 points, or 15.82 per cent, from its peak. On the other hand, the Sensex has declined 12,892 points, or 15 per cent, from its peak of 85,978.25.

Despite the steep market crash, recovery is not in close sight. Experts expect the market to remain in the negative zone for a longer period as there are no signs of earnings recovery. After disappointing Q1, Q2, and Q3 earnings, even the Q4 numbers could come on the softer side, as indicated by slowing banks' credit growth.

Moreover, several experts believe the domestic market lacks value despite sharp correction.

"We do not find much value in the market (see Exhibits 6-11) despite the severe market correction. Most parts of the market are expensive on an absolute basis or on a historical basis," said brokerage firm Kotak Securities.

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Disclaimer: The data about m-cap erosion of stocks and group companies in the above report has been taken from Capiptalmarket. This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.