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Steel, shipping firms gain in market rally
Rakesh P Sharma & Ashok Divase in Mumbai |
August 19, 2003 09:12 IST
Business houses with interests in steel and shipping are among the biggest gainers, in terms of wealth creation, during the market rally over the past three months.
From a six-month low of 2,924.07 points on April 25, the Bombay Stock Exchange Sensex vaulted 36 per cent (1,054 points) to close at 3,977.73 on Monday.
The O P Jindal group's market capitalisation surged 157.34 per cent (Rs 4,212.56 crore -- Rs 42.125 billion) in the past three months, from Rs 1,993.45 crore (Rs 19.934 billion) in April to Rs 6,206.01 crore (Rs 62.060 billion) on Monday.
A recovery in domestic steel prices saw the stock prices of O P Jindal group companies, including Jindal Iron, Jindal Steel & Power and Saw Pipes, surging.
The Lloyds group, facing a financial crisis, is also seeing a sharp rise in market capitalisation.
The group, which has a presence in hot-rolled, cold-rolled and galvanised steel, saw a 419.3 per cent rise in market capitalisation to Rs 179.14 crore (Rs 1.701 billion).
The market capitalisation of the Ruias' Essar group jumped 313.1 per cent in the past three months to Rs 1,693.77 crore (Rs 16.937 billion).
Apart from the rise in steel prices, the group has also gained because of the recovery in shipping rates in this period.
The L M Mittal group, which controls Gontermann Peipers and Ispat Industries, has seen its market capitalisation surging 354.9 per cent to Rs 1,388.99 crore (Rs 13.889 billion).
The group is involved in the grey cast-iron and various steel composites businesses.
In the shipping sector, GE Shipping is worth Rs 1,429.38 crore (Rs 14.293 billion), 88.2 per cent more than the Rs 670 crore (Rs 6.70 billion) it was worth three months ago.
Essar Shipping's market valuation has increased 252.7 per cent (Rs 426.95 crore -- Rs 42.695 billion) to Rs 595.92 crore -- Rs 5.959 billion).
Garware Shipping has gained 400 per cent in value between April 25 and today to Rs 21.84 crore (Rs 218.4 million) and Chowgule Shipping 222 per cent (Rs 28.61 crore -- Rs 286.1 million) to Rs 41.50 crore (Rs 415 million).