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Last week, the stock market closed up 781 points.
In terms of market capitalization, 7 out of the 10 largest companies in the country increased to Rs 74,574 crore in the last week’s business. During this time the banking sector saw the most purchases.
HDFC bank was the top gainer. Its market cap increased by Rs 30,106 crore to ₹ 14.82 lakh crore. The value of Life Insurance Corporation of India (LIC) rose ₹ 20,588 crore to ₹ 5.73 lakh crore.
SBI’s market cap increased by Rs 9,277 crore to ₹ 8 lakh crore. At the same time, the market cap of Reliance Industries Limited, the country’s largest company, has fallen by Rs 19,351 crore to ₹ 18.45 lakh crore. In addition, the value of Airtel and Infosys has also fallen.
Market rises 781 points last week
The stock market closed rapidly on Friday, October 3, the last trading day of last week. The Sensex rose by 223 points to close at 81,207 levels. At the same time, the Nifty also climbed 57 points to close at 24,894 levels. At the same time, it closed up 781 points in the week -long business.
What is a market capitalization?
Market cap is the value of any company’s total outstanding stocks, ie all the shares that its shareholders currently have. Its calculation is done by multiplying the total number of issued shares of the company by their price.
Understand this with an example …
Suppose … People have purchased in 1 crore stock market of company ‘A’. If the price of a share is Rs 20, then the company’s market value will be Rs 1 crore x 20 or 20 crores.
The market value of companies increases due to increase in share prices or decreases. There are many other reasons for this …
| What to grow | What does it mean to decrease |
| Increase in share price | Decline in share price |
| Strong financial performance | Bad results |
| Positive news or event | Negative news or event |
| Positive market sentiments | Economy or market decline |
| Issue of shares at high price | Shares buyback or delisting |
What is the impact on the company and investors on market cap fluctuations?
Effect on the company: The big market cap helps the company to raise funds from the market, take loans or to acquire other companies. At the same time, small or low market cap reduces the company’s ability to take financial decisions.
Effect on investors: Increasing market cap provides direct benefits to investors. Because the price of their shares increases. The same, the decline can cause damage, allowing investors to decide to sell shares.
Example: If the TCS market cap increases with ₹ 12.43 lakh crore, then investors’ assets will increase, and the company can get more capital for future investment. But if the market cap falls, it can be damaged.
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