India Inc's market capitalisation has topped $703.43 billion (Rs 31.45 trillion) on Wednesday, inching close to the country's gross domestic products (GDP) estimated to be around $750 billion. This marks an increase of $301 billion (Rs 13.83 trillion) from a year ago level of $402.28 billion (Rs 17.61 trillion).

Eight years ago, India Inc's market capitalisation was hovering around $100 billion. From that level in 1998 it doubled to $200 billion in 2000, triggered by the ICE (information, communication and entertainment) rally of the new millennium.

The market took four years to cross $300 billion market cap in 2004. The rally was fuelled by the government move to divest states in some of the profit making public sector companies and foreign institutional investors (FII) new found interest in the India story.

From now on, the bourses made rapid strides with the market value of the listed stocks increasing to $400 billion in March 2005 and further to $500 billion in September 2005. India Inc's marketcap rose to $600 billion in February 2006 and $700 billion on April 5.

Wealth creation by India Inc has been on the fast lane on the FIIs' faith in the India story despite the apparently stretched valuation, analysts point out.

With the soaring value of the listed companies, members of the $1billion market cap club has risen to 109. The $1 billion club, which has increased by 40 members in the last one year, added almost three-fourth of the total market capitalisation gain last year.

The group of new entrants includes in the $1 billion club Suzlon Energy ($9.1 billion), Reliance Communication Ventures ($8.6 billion), IDFC ($1.8 billion), Punj Lloyd ($1.3 billion) and Reliance Energy Ventures ($1.2 billion).

Suzlon, IDFC and Punj Lloyd created wealth through a public offer, RCoVL and REVL through the demerger of Reliance Industries.

The number of sectors with market cap of over Rs 1 trillion increased to seven from four a year ago. The new sectoral entrants are telecom, pharma and petrochemicals. The seven sectors accounts for 63.24 per cent of the total market capitalisation.

Information technology sector tops with market cap of Rs 3.81 trillion, followed by oil and gas Rs 3.44 trillion, banks Rs 2.71 trillion, power Rs 2.07 trillion, telecom Rs 1.55 trillion, pharmaceuticals Rs 1.53 trillion and petrochemicals Rs 1.31 trillion.

(www.business-standard.com)