Reliance’s value increased by ₹ 47,431 crore this week: Market cap of 4 top-10 companies increased by ₹ 95,447 crore; Know what is market cap

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.

According to market valuation, the value of 4 of the country’s 10 largest companies has increased by ₹ 95,447 crore in this week’s trading. During this period, the country’s largest private sector company Reliance Industries was the top gainer.

The market cap of the company has increased by ₹47,431 crore to ₹20.12 lakh crore. At the same time, the market cap of the largest public sector bank SBI has increased by ₹ 30,092 crore during this period to reach ₹ 8.65 lakh crore.

Bajaj Finance’s value reduced by ₹29,090 crore

At the same time, the value of 6 companies out of the top-10 has fallen by ₹91,686 crore. Bajaj Finance was the top loser during this period. The value of the company has decreased by ₹ 29,090 crore during this period and has come down to ₹ 6.49 lakh crore. At the same time, ICICI Bank lost its valuation by ₹ 21,619 crore during this period and now it has come down to ₹ 9.61 lakh crore.

The market closed down by 466 points on Friday

On Friday, October 31, the last trading day of the week, the Sensex fell 466 points and closed at 83,939. Nifty also fell by 155 points, closing at 25,722. There was a fluctuation of 800 points in the market during the day’s trading.

Out of 30 Sensex stocks, 25 declined. Bharat Electronics shares rose 4%. At the same time, Zomato, NTPC and Kotak Bank declined by up to 3.5%.

41 out of 50 Nifty stocks closed down. More decline was seen in IT, media and metal shares of NSE. At the same time, there was more buying in government banks and oil and gas shares.

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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