Mumbai57 minutes ago
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In terms of market valuation, the valuation of 4 out of the top 10 companies of the country has decreased by Rs 96,606 crore in last week’s trading. During this period, the country’s largest private sector bank HDFC and ICICI Bank were the top losers.
The market cap of HDFC Bank has decreased by Rs 37,025 crore to Rs 13.38 lakh crore. At the same time, the value of ICICI Bank has come down by Rs 29,325 crore to Rs 8.93 lakh crore.
LIC’s market value increased by Rs 13,282.49 crore
At the same time, after last week’s trading, the market value of Life Insurance Corporation of India i.e. LIC has increased by Rs 13,282 crore to Rs 5.75 lakh crore. Apart from this, valuations of Infosys, ITC, Airtel have also increased.
There was a rise in the stock market last week
On the last trading day of the week i.e. January 3, the Sensex closed at 79,223 with a fall of 720 points. Nifty also fell by 183 points, it closed at the level of 24,004. Out of 30 Sensex stocks, 20 declined and 10 rose. Out of 50 Nifty stocks, 32 declined and 18 rose. Sensex rose 524 points in last week’s trading.
The IT sector closed with the biggest decline of 1.41% in the NSE sectoral index. At the same time, Banking, Pharma, Healthcare and Financial Services closed with a decline of more than 1%. Whereas, Nifty Oil & Gas rose by 1.26% and Media sector rose by 1.70%.
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 the stock price.
Market cap is used to categorize shares of companies to help investors choose them according to their risk profile. Like 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 shares will yield profit or not is estimated by looking at many factors. One of these factors is market cap. Investors can find out how big a company is by looking at the market cap.
The higher the market cap of the company, the better company it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the publicly perceived value of that company.
How does market cap fluctuate?
It is clear from the market cap formula that it is calculated by multiplying the total number of issued shares of the company by the stock price. That means if the share price increases then the market cap will also increase and if the share price decreases then the market cap will also decrease.
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