Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022

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Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022
Ratan Tata, Gautam Adani, Kumar Mangalam Birla and Mukesh Ambani.Business Insider India.
  • Mukesh Ambani and Gautam Adani have been going from strength to strength, adding billions of dollars to their personal wealth even as markets correct on recession and inflation concerns.
  • What’s interesting is that they are the only ones among major business families to have gained this year, while the old money families like Tatas and Birlas have declined.
  • Here’s how the Ambanis, Adanis, Tatas, Birlas and others big business houses of India have fared in the first six months of 2022.
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Mukesh Ambani and Gautam Adani’s stars continue to shine even when markets have seen double-digit falls in the first six months of 2022. Most of the old money business houses of Tatas, Birlas, Mahindras and others saw an even bigger fall in the same period.

The benchmark Nifty 50 and Sensex have fallen over 11% this year so far. While this seems like a big fall, many of their global counterparts have fared worse.

IndexCurrentYTD Perf
Nifty 5015,632-11.3%
Sensex52,528-11.2%
S&P 5003,785-21.1%
DJIA30,755-15.9%
Nasdaq Composite11,029-30.3%
FTSE 1007,169-4.5%
DAX12,784-20.2%
Nikkei 22525,944-11.5%
Note: As at 11:30 a.m., July 1, 2022

In India, the old money business houses – the likes of Tatas, Birlas, Mahindras, Premjis and others have all seen a massive decline in these six months.

Only two business families have managed to grow this year are the Ambanis and Adanis.

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More specifically, even Mukesh Ambani’s Reliance has barely managed to remain in the green, with a growth of a meager 2% – meager in comparison to Gautam Adani’s seven listed companies, which grew 38% in the same period.

Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022
Performance of business families.NSE / Business Insider India / Flourish

Wipro’s massive decline this year is a result of the Indian IT sector facing headwinds due to recessionary concerns in the West, its primary clientele. While its rivals TCS and Infosys have also declined this year, they have performed significantly better than Wipro.

The Tata group of companies however remain the most valuable in the country, with a combined market cap of nearly ₹20 lakh crore, while Mukesh Ambani’s Reliance is a close second at nearly ₹18 lakh crore.

Gautam Adani’s seven companies are more valuable than the Bajajs, Birlas and Premjis.

Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022
Market cap of Tata Group, Reliance Industries, Adani Group and others.NSE / Business Insider India / Flourish

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Adani group’s focus on energy and FMCG has helped it maintain a strong momentum into 2022 – the rise in crude oil and food prices has also contributed significantly to the surge in the group’s value.

$TATAMOTORS.NSE is having a interesting set up on weekly charts. Stock has been travelling in downside channel since last 6 months but this correction was not supported by volumes which means long term investors are still holding on. Technically, who has missed the previous rally, should have this stock on watch list now as stock is above to breach weekly channel on upside at 427. Rally could be fast and furious!

— (@Kushghodasara) July 01, 2022

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