Tata Group has once again become the most valued group in India. In the process, they dethroned the supremacy of the Reliance group and ended their six-month run at the top. Tata Motors and Tata Steel, including TCS, witnessed a tremendous spurt, bringing the Tata group’s total market cap to Rs 16.69 lakh crore. Which is about 36% higher than Reliance Group.
The boom in TCS shares is due to the fact that the company has made several big deals even during the COVID-19 crisis. Tata Steel has also benefited immensely from the rise in steel prices. Shares of Tata Motors have also risen more than 100% since July.
For Reliance, Jio proved to be a big gamechanger. Giants like Facebook, Google invested in it. Which benefited Reliance. But the Aramco deal controversies worsened the investor mood. Reliance Group shares have lost 22% since September.
Notably on, September 16, Reliance’s market cap crossed the record level of Rs 16 lakh crore, as Reliance became the first company in the country to cross the Rs 16 lakh crore market cap. RIL’s shares also set a record high of 2,368 at that time. However, reliance shares continued to fall, leaving the market cap at Rs 12.22 lakh crore.
In July 2020, the total market cap (M-Cap) of 17 listed companies of Tata Group was Rs 11.32 lakh crore, while Reliance Industries’ market cap crossed Rs 13 lakh crore, and Reliance Group had overtaken the Tata group in terms of market cap and became the country’s number one group.
Tata outperforms Reliance
Tata Group’s performance has been impressive over the past year, with the group’s market cap growing by more than 42 cents in a year. Surprisingly, the Tata group’s market cap has increased by 13 cents in the past month, i.e., in a month, the group has added Rs 1.9 lakh crore to its market cap.
While Mukesh Ambani’s Reliance Group’s market cap has increased by 27 cents against Tata Group’s 42 percent, HDFC Group has grown by just 11 cents. The biggest reason for the Tata group’s market cap boom is that 18 of its 28 listed companies outperformed last month.