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In terms of market capitalization, 8 out of the top-10 companies in the country have reduced by Rs 1.65 lakh crore in the last week. During this time HDFC bank was the top loser. The company’s market cap has come down to Rs 47,075 crore to Rs 14.68 lakh crore.
The value of Reliance Industries has reduced ₹ 21,516 crore, SBI’s ₹ 18,250 crore and Hindustan Unilever ₹ 16,388 crore. Here, the value of Tata Consultancy Services (TCS) has increased by Rs 22,215 crore to Rs 12.47 lakh crore.
Market value of these companies decreased
|
Company |
Market cap declines (in crores) |
Current market cap (in lakh crores) |
|
Hdfc bank |
₹47,075.97 |
₹14.68 |
|
Icici bank |
₹30,677 |
₹10.10 |
|
reliance |
₹21,516 |
₹19.31 |
|
SBI Bank |
₹18,250 |
₹7.7 |
|
Their |
₹16,388 |
₹5.44 |
|
Airtel |
₹15,481 |
₹10.50 |
|
LIC |
₹13,693 |
₹5.93 |
|
Bajaj Finance |
₹2,417 |
₹5.80 |
Market value of these companies increased
|
Company |
Increase in market cap (in crores) |
Current market cap (in lakh crores) |
|
TCS |
₹22,215 |
₹12.47 |
|
Infosys |
₹15,578 |
₹6.65 |
Top-10 companies of the country in terms of market cap
|
Company |
Market cap (in lakh crores) |
|
reliance |
₹19.31 |
|
Hdfc bank |
₹14.68 |
|
TCS |
₹12.47 |
|
Airtel |
₹10.50 |
|
Icici bank |
₹10.10 |
|
SBI |
₹7.7 |
|
Infosys |
₹6.65 |
|
LIC |
₹5.93 |
|
Bajaj finance |
₹5.80 |
|
Their |
₹5.44 |
Source: BSE (14, June)
The market was gaining momentum last week
The stock market declined today after Israel’s attack on Iran i.e. on 13 June. The Sensex fell 573 points to close at 81,118. At the same time, the Nifty also fell by about 169 points, it closed at 24,718 levels.
Sensex’s 30 shares rose in 4 and 26 shares declined. Banking, oil and gas, auto and IT shares fell more. The shares of airline companies are also broken after tomorrow’s Air India aircraft crashed.
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 …
How does the market value grow?
- Share price- Increased demand for shares in the market leads to competition, due to which prices rise.
- Strong Financial Performance: The company attracts investors in things like earnings, revenue, profits.
- Positive News or Event- Product launch, acquisition, new contract or regulatory approval increases demand for shares.
- Market Service- Bulish market trends or sector specific expectations such as IT sector estimate attracts investors.
- Issuing shares at high price: If a company issues new shares at a high price, the market cap increases without decreasing the value.
How does the market value decrease?
- Decline in share price- Due to lack of demand, the price of shares falls, it directly affects the market cap.
- Bad results- Investors sell shares due to decrease in earnings, losses or losses in a financial year or quarter.
- Negative News- Any negative news related to scandal, legal action, product failure or leadership reduces investment.
- Economy or market decline- The recession, increase in interest rates and below can drop market shares.
- Share buyback or delisting: If a company purchases shares back or becomes private, the number of outstanding shares decreases.
- Industry Challenge: The demand for shares decreases due to regulatory change, technological disorder or declining demand for a sector.
How does the market cap use?
- The market cap is used to catarise the shares of companies, so that investors will help in choosing them according to their risk profiles. Such as large cap, mid cap and small cap companies.
- 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 to be a good company. According to demand and supply, stock prices rise and decrease. Therefore, the market cap is the public’s public percevad value.
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