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- 7 Of Top 10 Indian Companies Lose ₹3.63 Lakh Crore In A Week – Reliance Hits Hardest
New Delhi4 minutes ago
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The value of 7 of the country’s 10 largest companies in terms of market capitalization declined by Rs 3.63 lakh crore in last week’s trading. During this period, the value of the country’s largest government bank Reliance Industries has decreased the most.
Reliance’s market cap declined by Rs 1.58 lakh crore to Rs 19.96 lakh crore. The market value of HDFC Bank has declined by ₹96,153 crore to ₹14.44 lakh crore.
Whereas Bharti Airtel’s market cap has declined by ₹45,274 crore to ₹11.55 lakh crore. Apart from this, the value of Bajaj Finance, Larsen & Toubro, TCS and Infosys has also decreased.
ICICI Bank’s market cap increased
Whereas the market cap of ICICI Bank has increased by Rs 34,901 crore to reach ₹ 10.03 lakh crore. The value of HUL has increased by Rs 6,097 crore to ₹5.57 lakh crore.
The market value of the country’s largest government bank SBI has also increased. The market value of SBI has also increased by Rs 600 crore, it has reached Rs 9.23 lakh crore.
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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