New Delhi23 minutes ago
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In terms of market capitalization, the value of 8 of the country’s top 10 companies has declined by a combined Rs 1,28,913.5 crore (Rs 1.28 lakh crore) last week. During this period, a big decline was seen in the valuation of Tata Consultancy Services (TCS).
The valuation of the IT company has decreased by Rs 37,972 crore during the week’s trading. Now the market cap of the company has come down to Rs 15.50 lakh crore. Earlier, the market cap of the company was Rs 15.86 lakh crore.
HDFC Bank’s value increased by Rs 32,759 crore
Apart from TCS, Infosys, ITC, SBI, Reliance Industries, Bharti Airtel, ICICI Bank and Hindustan Unilever also saw a decline in the market last week. At the same time, the market cap of HDFC Bank and Life Insurance Corporation of India i.e. LIC has increased during this period.
HDFC’s market cap has increased by Rs 32,759 crore to Rs 12.64 lakh crore. Whereas, LIC’s valuation has increased by Rs 1,075 crore to Rs 7.47 lakh crore. In the last week’s trading, the Sensex had fallen by a total of 351 points.
The Sensex fell 885 points on Friday
The market witnessed a decline on the last trading day of the week (Friday, 2 August). The Sensex closed at 80,981 with a fall of 885 points. At the same time, the Nifty also fell by 293 points and closed at 24,717. Out of the 30 Sensex stocks, 25 fell and only 5 rose. Out of the 50 Nifty stocks, 42 fell and 8 rose.
The realty sector witnessed the maximum decline of 3.53%
Talking about the sectoral index of NSE, the realty sector saw the maximum decline of 3.53%. On the other hand, auto fell by 2.92%, metal by 2.70%, IT by 2.41% and PSU bank by 1.72%. Whereas, pharma rose by 0.52% and healthcare by 0.36%.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, that is, all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company with the stock price.
Market cap is used to categorise company stocks to help investors choose them based on their risk profile, such as large cap, mid cap and small cap companies.
Market cap = (Number of shares outstanding) x (Price of shares)
How does market cap work?
Whether a company’s stock will give profit or not is estimated by looking at several factors. One of these factors is market cap. Investors can find out how big the company is by looking at the market cap.
The higher the market cap of a company, the better it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the public perceived value of that company.
How does market cap fluctuate?
It is clear from the formula of market cap that it is calculated by multiplying the total number of issued shares of the company with the stock price. That is, if the share price increases, the market cap will also increase and if the share price decreases, the market cap will also decrease.
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Value of 6 of the top 10 companies increased by ₹1.85 lakh crore: LIC’s market cap increased by 44,907 crores, Reliance’s value decreased for the second consecutive week
In terms of market capitalization, the value of 6 out of the top 10 companies of the country has increased by a combined Rs 1,85,186.51 crore (Rs 1.85 lakh crore) last week. During this period, Life Insurance Corporation of India (LIC) was the top gainer. Click here to read the full news…
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