Tata Group’s market cap reached $365 billion.
The shares of Tata Group have delivered stunning returns in the past one year, catapulting the market value of salt-to-software conglomerate to $365 billion (Rs 30.3 lakh crore) – more than the entire gross domestic product (GDP) of Pakistan, which is almost $341 billion. According to NDTV Profit, Tata Group is the first to touch this landmark. Tata Consultancy Services Ltd. has about half of the group’s market cap with Rs 15.13 lakh crore, followed by Titan Co. and Tata Motors Ltd, the NDTV Profit report further said.
The report has caused a cheer among social media users, with many users congratulating the company.
“Tata Group’s market cap hits $365B, surpassing Pakistan’s GDP! TCS alone, valued at $170 billion, equals half of Pakistan’s GDP,” said one user.
“GDP of Iran is nearly the same as the market cap of Tata Group,” claimed another.
Earlier this month, shares of TCS hit a lifetime high, said NDTV Profit. At least eight Tata companies have more than doubled wealth in the last one year.
Situation in Pakistan
Pakistan is facing a full-scale economic crisis, as negotiations are on among major political players in Pakistan to form the government after the recently-held elections.
According to a Reuters report, Pakistan’s foreign exchange reserves stand at roughly $8 billion which barely covers two months of essential imports although it is an improvement from the $3.1 billion they were down to just over a year ago.
Pakistan’s debt-to-GDP ratio is already above 70 per cent and the International Monetary Fund (IMF) and credit ratings agencies estimate that the interest payments on its debt will soak up 50 to 60 per cent of the government’s revenues this year. That is the worst ratio of any sizable economy in the world.
Finally, a combination of tax and gas tariff hikes and a steep fall in the rupee currency have pushed inflation up to nearly 30 per cent year-on-year.
