The successful run of the six government offers for sale has driven market capitalisation up by Rs 52,000 crore (Rs 520 billion) during the week ended March 5, 2004 to Rs 12,24,240 crore (Rs 12,242.40 billion).
The trigger was the news that all six firms in the selloff list had been oversubscribed handsomely, with the Rs 10,000 crore (Rs 100 billion) Oil and Natural Gas Corporation offer having been fully subscribed in the first 15 minutes.
However, the undercurrent has remained cautious with the number of scrips reporting losses on a week-on-week basis outnumbering gainers in the ratio of 5:4.
This means that of the 2,111 stocks traded on the Bombay Stock Exchange, 1,161 stocks were losers and 950 gained ground during the week ended March 5, 2004.
Six stocks in the selloff list outperformed the markets by posting an aggregate gain of 10.87 per cent. Their market capitalisation recovered by Rs 13,888 crore (Rs 138.88 billion), accounting for over 25 per cent of the gain in market cap in the last week.
The market barometers, the Sensex and S&P CNX Nifty, gained 3.75 per cent while the broad market recovered 4.23 per cent.
ONGC vaulted ahead with a market capitalisation gain of Rs 12,000 crore (Rs 120 billion). The stock is up 11.72 per cent from Rs 718.10 on February 27 to Rs 802.25 on March 5, 2004.
The market capitalisation of Dredging Corporation jumped up 23.2 per cent and IPCL's market cap improved 9.41 per cent. GAIL rise 3.4 per cent and CMC gained 3.97 per cent. The recovery in the market, however, was restricted to the A group stocks.
The market capitalisation of these stocks rose 4.45 per cent, while the prices of B1 group stocks remained at levels of a week ago. The B2 group shares edged down, posting a 0.80 per cent loss in value.
The Dredging Corporation scrip remained the biggest gainer among A group stocks with a 23.17 per cent price appreciation to Rs 588.70 in the week ended March 5.
HCL Infosystems gained 15.54 per cent to Rs 595.40, Tata Power appreciated by 14.10 per cent to Rs 396.60 while Crompton Greaves moved up 12.89 per cent to Rs 140.40.
The Dr Reddy's Laboratories scrip tops the list of losers with a price depreciation of 17.56 per cent to Rs 1022.30.
The price war between P&G and Hindustan Lever effected the market prices of these stocks. Hindustan Lever depreciated 9.02 per cent to Rs 158.35 while the P&G scrip lost 8.22 per cent to Rs 395.20.
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