Maruti Is World’s 2nd Best Performing Auto Stock After Tesla
Maruti's market capital makes it more valuable than iconic automobile brands
The symphony of stock market is actually the most unpredictable race ever invented.
Yesterday, two very interesting developments happened, which will have some some long implications on the overall stock market in India.
While Maruti Suzuki India has become world’s 2nd best performing auto stock, HDFC Bank briefly become India’s 2nd biggest company, beating TCS.
Can cars made in India actually beat global biggies? Will financial niche overtake IT industry in India?
Maruti Is World’s 2nd Best Performing Auto Stock
This year, stocks of Maruti Suzuki India Ltd. has increased by 53.32%, which makes it world’s 2nd best auto stock, only after Tesla whose share prices increased by 70.20% in the same period.
While Tesla models are expensive, backed by intense passion of Elon Musk, Maruti Suzuki is India’s one of the oldest automobile brand, selling cars which are priced moderately, and targeted for the middle class.
Yesterday, share prices of Maruti touched a record Rs 8200 per unit, and closed at Rs 8161.10, which was 20% higher than day before yesterday.
This way, Maruti now has a market capital of $38.49 billion, which makes it more valuable and powerful than iconic automobile brands such as Audi ($35.23 billion), Renault ($27.31 billion), Subaru ($26.7 billion) and Hyundai ($26.46 billion) as well.
HDFC Bank Beats TCS, Albeit Briefly
HDFC Bank, which has recently been declared as a bank which is too big to fail, surpassed TCS to become India’s 2nd most valuable company, only after Reliance Industries.
Yesterday, during the afternoon trade, total market capital of HDFC Bank rose to Rs 4,73,530.72 crore, compared to Rs 4,72,733.32 crore market cap of TCS. Hence, HDFC Bank’s valuation increased by Rs 797.4 crore, compared to TCS.
This was a rapid increase in HDFC Bank’s fortunes, as their share prices increased by massive 53% this year, compared to only 5% by TCS.
However, by the end of trading session, share prices of TCS pulled them up, and they ended up with market capital of Rs 4,76,045.04 crore, which is Rs 2,578.86 more than what HDFC Bank’s total market capital was.
Reliance Industries, with market capital of Rs 5,35,509.87 crore is India’s most powerful brand.
Nonetheless, this gradual increase in HDFC Bank’s share prices, and equally gradual reduction in TCS’ share prices strongly indicates that IT industry is paying the price of job cuts, automation and to some extent US visa policy changes.
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