Mumbai31 minutes ago
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In terms of market valuation, the valuation of 5 out of the top-10 companies of the country has increased by Rs 1,13,117 (1.13 lakh) crore after last week’s trading. During this period, telecom company Bharti Airtel was the top gainer. The market cap of the company increased by Rs 47,837 crore to reach Rs 9.58 lakh crore.
At the same time, Infosys added Rs 31,827 crore to its valuation. Now the market cap of the company has reached Rs 8.30 lakh crore. Apart from this, the market value of HDFC Bank, ICICI Bank and Tata Consultancy Services also increased by ₹11,888 crore, ₹11,761 crore and ₹9,805 crore.
Reliance Industries’ value reduced by ₹52,032 crore
Whereas after last week’s trading, the valuation of the country’s most valuable company Reliance Industries declined by Rs 52,032 crore and the market value of the company has come down to Rs 17.23 lakh crore.
At the same time, the valuations of Life Insurance Corporation of India (LIC), Hindustan Unilever Limited (HUL), State Bank of India (SBI) and ITC have also declined.
Sensex rose 623 points last week
On the last trading day of last week i.e. December 13, the market closed at the level of 82,133 after a rise of 843 points (1.04%). During trading, the Sensex had recovered 2,131 points from the day’s low of 80,082 and reached the day’s high of 82,213.
Nifty also closed at the level of 24,768 with a rise of 219 points (0.89%). During trading, Nifty recovered 612 points from the day’s low of 24,180 and reached the day’s high of 24,792.
Out of 30 Sensex stocks, 26 rose and 4 fell. Whereas out of 50 stocks of Nifty, 41 had a rise and 9 had a fall. FMCG sector rose the most in NSE sectoral index by 1.29%. Sensex rose 623 points in week’s trading.
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 formula of market cap 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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