Race to $100 Billion!

With cross broder acquisitions becoming a norm and with domestic mergers on the foray the race is on to reach the magic figure of $ 100 billion for most of the Indian companies. But India’s biggest and most trusted company Reliance Industries stands at No.1 position with a total market value of $ 43 billion sharing the position with India’s public sector energy gaint ONGC. Bharti Airtel which is India’s No.1 telecom company takes the third spot with a market capitalisation of $ 32 billion. All these companies have still a long way to go to reach the magic figure.

So are we giving way too much attention to this topic than it requires? Maybe or maynot. But what is true is that India’s Economy has never been better and the good news is that the party has just begun. The Indian stock market has been performing extremely well and has shown signs of standing pretty tall in difficult times which is always good in the long term. What is more encouraging are the projections that some of the top financial analysts have furnished. Even the most cautious ones are quite confident that the sensex can easily soar over 40,000 mark in comfortable time. Morgan Stanley said that the sensex will cross the 50000 barrier in about 10 years from now, which sounds unbeliavable , atleast this point in time. Earning a global footprint through foreign acquisitions and domestic mergers which would eventually unlock greater value through its operations are other strong reasons for us to be optimistic. Finally other businesses that are huge and have not been listed ,like the Retail sector, when listed will only help in realising the $ 100 billlion dream faster. What is defnitely true and maybe more important than anything else for the members of India Inc., to focus on is the fact that there will be tough competition and the the only way to reach the top spot is to sustain this competition. After all its the Survival of the Fittest !