Mumbai25 minutes ago
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In terms of market capitalization, the value of 7 out of the top 10 companies of the country has increased by a combined Rs 1,40,863.66 crore (Rs 1.40 lakh crore) last week. Tata Consultancy Services i.e. TCS was the top gainer.
During the week’s trading, the market cap of the tech company increased by Rs 67,477.33 crore. Now the valuation of the company has increased to Rs 15.98 lakh crore. Earlier, the market cap of the company was Rs 15.31 lakh crore.
Besides TCS, Infosys, Bharti Airtel, ICICI Bank, ITC Ltd, Reliance Industries Ltd and Hindustan Unilever also made gains during the week.
The value of LIC, HDFC and SBI decreased by Rs 71,497 crore
At the same time, the market cap of Life Insurance Corporation of India (LIC), HDFC Bank and State Bank of India (SBI) has declined by Rs 71,493.9 crore during this period.
The market cap of LIC has come down by Rs 47,943.48 crore to Rs 6.69 lakh crore. Meanwhile, the market valuation of HDFC Bank and SBI has declined by Rs 13,064 crore and Rs 10,486.42 crore respectively during this period.
The market rose 731 points this week
On the last trading day of the week, i.e. Friday (August 16), the Sensex closed at 80,436 with a gain of 1,330 points or 1.68%. Nifty also rose by about 400 points (1.65%) and closed at 24,541.
The market opened with a gain of more than 800 points in the morning, although later it saw a decline of 200 points. Then the market came up again. There was buying in IT, auto, media, realty and oil and gas stocks. During the week’s trading, the Sensex gained a total of 731 (1.57%) points.
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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