It being a positive Budget, the stock market reaction was very much on predictable lines. The bourses showed an impressive ride on February 28, compared to the same period last year. This has been made possible probably because there was a significant rise in stock prices of automobiles, construction, sugar, electric equipment and hotels.
The total BSE M-Cap shot up by 62.2% (Rs 10,31,230 crore) to Rs 26,88,405 crore on February 28, 2006, from Rs 16,57,174 crore on February 28, 2005. Similarly, Sensex rose by 3656.38 points (54.5%) to 10,370.24 on February 28 this year, from the corresponding figure of 6713.86 previous year. Nifty, too, went up by 971.45 points (46.2%) to 3,074.70 from 2103.25 during the said period.
In the case of A group, the total M-Cap of 192 companies was in the higher circuit, up by 41.77% to Rs 20,63,293 crore on February 28, 2006 from Rs 14,55,331 crore on February 28, 2005. The M-Cap of A group in the total BSE, however, slid from 87.8% on February 28 last year to this year figure of 76.7%.
ONGC, the numero uno in terms of market capitalisation, retained the number one slot as on February 28, 2006. Not only did it manage to hold on to its number one position, but in the process it also ratcheted up its value by a cool Rs 40,575 crore. NTPC, the second rank-holder, added Rs 31,415 crore to its market capitalisation kitty. On the other hand, Reliance Industries came third on February 28, 2006 and the company’s value, as measured by the stock market, was up by Rs 21,279 crore over the year.
There was some perceivable rise in market capitalisation in automobile stocks. Bajaj Auto gained by Rs 15,867 crore to its market capitalisation, an increase of 151.7% over its last year’s level of Rs 10,455.29 crore. Maruti Udyog, too, revved up by 73.9% during the study period.
