Mumbai2 minutes ago
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The value of the 10 largest companies in the country in terms of market captilation has reduced by Rs 2,99,662 crore in this week’s business. During this period, the value of Tata Consultancy Services (TCS), one of the world’s largest companies providing IT service, has fallen by ₹ 97,598 crore.
Now the company’s market cap is ₹ 10.49 lakh crore. At the same time, the market cap of Reliance Industries, the country’s largest company, has fallen ₹ 40,462 crore to ₹ 18.64 lakh crore during this period.
This week the stock market also dropped 2200 points. The reason behind this decline is the change in the policy of the US’s H1B visa and the 100% tariff of President Trump on branded drugs.
What is a market capitalization?
Market cap is the value of any company’s total outstanding stocks, ie all the shares that its shareholders currently have. Its calculation is done by multiplying the total number of issued shares of the company by their price.
Understand this with an example …
Suppose … People have purchased in 1 crore stock market of company ‘A’. If the price of a share is Rs 20, then the company’s market value will be Rs 1 crore x 20 or 20 crores.
The market value of companies increases due to increase in share prices or decreases. There are many other reasons for this …
| What to grow | What does it mean to decrease |
| Increase in share price | Decline in share price |
| Strong financial performance | Bad results |
| Positive news or event | Negative news or event |
| Positive market sentiments | Economy or market decline |
| Issue of shares at high price | Shares buyback or delisting |
What is the impact on the company and investors on market cap fluctuations?
Effect on the company: The big market cap helps the company to raise funds from the market, take loans or to acquire other companies. At the same time, small or low market cap reduces the company’s ability to take financial decisions.
Effect on investors: Increasing market cap provides direct benefits to investors. Because the price of their shares increases. The same, the decline can cause damage, allowing investors to decide to sell shares.
Example: If the TCS market cap increases with ₹ 12.43 lakh crore, then investors’ assets will increase, and the company can get more capital for future investment. But if the market cap falls, it can be damaged.
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Read this news too …
1. Trump now applied 100% tariff on branded drugs: will be applicable from 1 October; India exports 30% medicines to America
American President Donald Trump has announced a 100% tariff on branded or patented medicine. This tariff will be applicable from 1 October 2025. This tax will not be levied on companies who are setting up their own plant to make medicines in America.
Click here to read the full news …
2. America will charge ₹ 88 lakh for H-1B visa: 6 years spending increased 50 times; India said- many families will be affected by this
The US will now charge one million dollars (about 88 lakh rupees) application fees every year for H-1B visa. President Donald Trump signed this order at the White House on Saturday. The new charge will be applicable from 21 September.
Click here to read the full news …
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