The top 3 companies in BT500 list are consistent. The first spot has been taken by Reliance Industries Ltd (RIL) followed by Tata Consultancy Services (TCS) and HDFC Bank. The private sector lender registered a 19.4 per cent rise in its average market capitalisation during the period under review, while the other two saw their valuations dip.
Meanwhile, ICICI Bank has broken into the Top 5 this year by jumping two positions to No. 4, while FMCG major Hindustan Unilever (HUL) occupies the No. 5 spot.
It is followed by Infosys and State Bank of India (SBI)—in that order—while ITC breaks into the Top 10 at No. 8; the FMCG major was at No. 13 in 2022 and has seen a 54.3 per cent rise in its valuation. Bharti Airtel and Bajaj Finance at No. 9 and No. 10, respectively, round up the Top 10.
In terms of valuation, four of the Top 10 firms—RIL, TCS, Infosys and Bajaj Finance—have seen their respective market capitalisations dip even as the aggregate valuation of the 10 companies has risen a little over 6 per cent.
Insurance behemoth Life Insurance Corporation (LIC), which made a high-profile debut at No. 9 on the list in 2022, follows the Top 10 this year at No. 11, with a 10.8 per cent fall in its valuation.
Another interesting trend has been the performance of Adani Group firms. In contrast to last year, when most group firms had made stellar gains in market capitalisation, this year, barring Adani Enterprises, Adani Power and Ambuja Cements, the rest of the companies have seen their valuations dip and as a result have seen their rankings slide in the BT500 list.
Market participants attribute it to a combination of factors including a spike in crude prices and geopolitical concerns, among other fears. “There have been concerns about crude oil levels, and while they are back at $80 (Brent), they had been till recently above $85, and those levels begin worrying markets, as India is a major crude importer,” says R. Venkataraman, Chairman of IIFL Securities.
A recent report by Motilal Oswal Financial Services highlights this trend and states that this ratio fell to 95 per cent in FY23 from 113 per cent in FY22 and 103 per cent in FY21. In the current financial year, the ratio is pegged at 107 per cent— much above its long-term average of around 80 per cent—per the domestic broking major’s analysis.
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