Mumbai1 hour ago
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In the last week’s business, 4 of the top-10 companies in the country decreased by Rs 1.25 lakh crore. Among them, Reliance suffered the most loss last week. Its market cap declined by ₹ 74,969 crore to ₹ 16.85 lakh crore.
At the same time, the market cap of LIC declined by ₹ 21,251 thousand crore to 5.19 lakh crore. The market cap of SBI has come down by ₹ 17,626 crore to 6.64 lakh crores.
The market cap of ICICI Bank declined by ₹ 11,549 thousand crore to 8.53 lakh crore. Apart from this, the market value of Infosys, HDFC Bank, Bharti Airtel, TCS, HUL and ITC has increased.
What is a market capitalization?
The market cap is the value of the total outstanding stocks of any company, ie all the shares that its shareholders currently have. It is calculated by multiplying the totus number of the company’s issued shares by the price of the stock.
The market cap is used to catarise the shares of companies to help investors to choose them according to their risk profiles. Such as large cap, mid cap and small cap companies.
Market cap = (Number of outstanding shares) x (price of shares)
How does the market cap use?
Whether or not a company will get a profit in shares, it is estimated by looking at many factors. One of these factor is also a market cap. Investors can find out how big the company is by looking at the market cap.
The higher the market cap of the company, the better it is considered a good company. According to demand and supply, stock prices rise and decrease. Therefore, the market cap is the public’s public percevad value.
How does the market cap decrease?
It is clear from the formula of the market cap that it is removed by multiplying the total number of shares of the company by the price of stock. That is, if the share price increases, the market cap will also increase and the share price will decrease, then the market cap will also decrease.
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