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The Tata group may not be known for being on the stock-based rich lists, but changing market dynamics have led to the salt-to-software conglomerate overtaking the combined market wealth of the two Ambani groups put together. The share prices have been tumbling in recent past for both the Reliance groups, led by the billionaire brothers, Mr Mukesh and Mr Anil Ambani, and the analysts put the blame on a string of controversies surrounding them for many months now.

On the other hand, a host of Tata group firms have grown stronger, in terms of stock market valuation, while shrugging off an overall bearish sentiments in the broader market and even some controversies related to them.

In the process, the stock market wealth of the entire Tata group has grown to close to `4,40,000 crore.

Investors have historically preferred Reliance stocks for wealth creation, but situation is changing drastically as both Ambani groups are giving belowmarket returns.
“Reliance stocks are more controversial at the moment, whereas others are not,” Religare Securities Executive vice-president, (retail research), Mr Rajesh Jain, said.

“Moreover, a weak stock is more prone to get affected by any negative news.

That implies to RIL and ADAG stocks. RIL has underperformed the market in the past one year,” he added.

At close to Rs.4,40,000 crore, the stock market wealth of the entire Tata group is the highest for any corporate house and bigger than the combined figure of the two Ambani groups together at about Rs. 3,67,000 crore. This marks a sharp reversal of the things seen about an year ago, when Tatas were smaller than the Mukesh Ambani group alone. Tatas have about 30 listed companies, while the Mukesh Ambani group has only two. As per the latest market value of individual groups, Tatas rank on the top, followed by Mukeshled Reliance group at second position with about Rs.2,85,000 crore.
The Reliance Anil Dhirubhai Ambani Group, which ranked third after the Mukesh-led RIL group and Tatas a year ago, does not figure even among the top 10 groups now. In the past one year, Reliance ADAG’s market wealth has plunged by over Rs.60,000 crore to close to Rs.82,000 crore now.

The Mukesh-led group’s valuation has also fallen by about Rs.73,000 crore, but that of Tatas has grown by more than Rs.1,00,000 crore in the same period.

“For RIL, it was the lower gas production at the KGD6 basin, which has discouraged the investors,” said Mr Ambareesh Baliga, the COO of Way2Wealth.

The Tata firms that have added market wealth in the last year are TCS, Tata Motors, Tata Steel, Titan and Tata Coffee.

- - DC