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- Airtel Top Loser, Value Drops ₹30K Cr; ICICI Bank Market Cap Also Down
New Delhi25 minutes ago
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The value of 6 of the country’s 10 largest companies in terms of market cap declined by Rs 64,734.46 crore in last week’s trading. This decline has occurred due to tension in the Middle East and Israel-Iran war.
During this period, the value of Bharti Airtel decreased the most. Bharti Airtel’s market cap declined by Rs 29,993.07 crore to Rs 10.20 lakh crore. ICICI Bank’s market value declined by ₹12,845.81 crore to ₹8.70 lakh crore.
Bajaj Finance’s market cap declined by Rs 11,169.36 crore to ₹5.14 lakh crore. Whereas the market value of HDFC Bank declined by ₹7,822.79 crore to ₹11.56 lakh crore.
Apart from this, the market cap of Hindustan Unilever and State Bank of India also decreased. Whereas the market value of TCS, Infosys, Larsen & Toubro and Reliance Industries has increased.
Sensex had fallen 264 points last week
Last week, Sensex fell 264 points and Nifty 106 points amid the US-Israel and Iran war. There was a decline in the stock market on Thursday, April 2. The market was closed on Friday due to Good Friday holiday.
The Sensex had closed 1,773 points above its day’s low. In the morning it opened with heavy pressure and fell to the level of 71,545. Later there was buying in the market and it rose 185 points (0.25%) to close at 73,320.
Nifty also saw a recovery of 531 points after making a low of 22,182. It rose 34 points (0.15%) and closed at the level of 22,713.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by their price.
Understand this with an example…
Suppose… people have bought 1 crore shares of company ‘A’ in the market. If the price of a share is Rs 20, then the market value of the company will be Rs 1 crore x 20 i.e. Rs 20 crore.
The market value of companies increases or decreases due to increase or decrease in share prices. There are many other reasons for this…
| what does it mean to grow | what does decrease mean |
| increase in share price | decline in share price |
| strong financial performance | bad results |
| positive news or event | Negative news or event |
| positive market sentiment | Economy or market decline |
| Issuing shares at high price | Share buyback or delisting |
What effect do market cap fluctuations have on the company and investors?
Impact on the company: A large market cap helps the company to raise funds from the market, take loans or acquire other companies. At the same time, small or low market cap reduces the ability of the company to take financial decisions.
Impact on investors: Investors directly benefit from increasing market cap. Because the price of their shares increases. At the same time, the fall may cause losses, due to which investors may decide to sell shares.
Example: If TCS’s market cap grows by ₹12.43 lakh crore, investors’ wealth will increase, and the company may get more capital for future investments. But if the market cap falls then it may incur losses.
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