Mid-cap rally fuels rise of new billionaires, Motilal Oswal tops list

The sharp rally in mid- and small-cap stocks in 2017 has not only made investors rich but also added to the fortunes of promoters of listed companies. And, many of them have joined the exclusive club of dollar billionaires. Motilal Oswal and Raamdeo Agrawal of Motilal Financial Services, K M Mammen of MRF, Nimesh Kampani of JM Financial Services, R G Chandramogan of Hatsun Agro Products, and V C Nannapaneni of Natco Pharma are some of the new additions to the dollar billionaires’ club, who enjoy a net worth of over Rs 6,450 crore or $1 billion.This has been calculated on the basis of the promoters’ holdings in their respective listed companies as on December 31, 2016, and March 31, 2017, and the difference in the market prices on December 31 and May 31 this year. The calculations ignore cross-holdings. Commodity Trading Tips

The rise in the number of companies that comprise this elite club in CY17 has been fuelled by a sharp rally in the mid- and small-cap stocks and an appreciation in the rupee (against the dollar) value by five per cent to 64.51 in May from the end of December.The rally in financial services shares has seen the Motilal Oswal Financial Services and JM Financial stocks double from the December quarter. While Motilal Oswal Financial Services’ founders began as sub-brokers in the late 1980s, JM Financial’s Kampani is a veteran investment banker with decades of experience. Nifty Trading Tips

Natco Pharma has been one of the few pharma companies to have bucked the disappointing performance seen in the sector in recent times, and the stock’s 50-per cent rally in 2017 helped its promoter V C Nannapaneni enter the billionaire club. Vakrangee, which has managed to create a retail physical presence across a large part of the country using technology, has seen its stock price gain 50 per cent. Tyre manufacturer MRF and South-based dairy company Hatsun Agro are two other stocks that have enriched promoters, the Mammen family and Chandramogan R G, respectively. Varun Beverages, a bottler for PepsiCo, which was listed last year, has also led to Ravi Jaipuria becoming a billionaire. Kochouseph Chittilappilly, the promoter of electrical appliances maker V-Guard and theme park company Wonderla, also has net worth of over Rs 6,500 crore. Future & Option Trading Tips