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- Market Cap Of 7 Out Of Top 10 Indian Companies Surges By ₹2.03 Lakh Crore, Reliance Leads
Mumbai43 minutes ago
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market In terms of capitalization, the value of 7 of the country’s 10 largest companies increased by Rs 2.03 lakh crore in last week’s trading. During this period, the value of the country’s largest company Reliance Industries Limited has increased the most.
Reliance’s market cap increased by Rs 47,363.65 crore to reach ₹19.17 lakh crore. At the same time, the value of Bharti Airtel increased by ₹ 41,254 crore to ₹ 11.47 lakh crore.
ICICI Bank’s market value increased by ₹40,123.88 crore to reach ₹10.26 lakh crore. Apart from this, the value of HDFC Bank, Bajaj Finance, SBI and Infosys has also increased.
Market cap of LIC and TCS fell
Whereas the market cap of LIC has declined by Rs 7,684.87 crore to ₹ 5.60 lakh crore. At the same time, the market value of HUL and TCS has also decreased last week.
The value of HUL has declined by Rs 17,070.44 crore to ₹6.12 lakh crore. The market value of TCS has also fallen by Rs 23,807.01 crore, it has come to Rs 10.71 lakh crore.
On Friday, Sensex closed with a rise of 484 points.
The stock market witnessed a rise yesterday i.e. Friday (17 October), the last trading day of the week. Sensex closed at 83,952, up 484 points. Nifty also rose by 124 points, it closed at the level of 25,709. Out of 30 Sensex stocks, 16 rose and 14 fell.
Asian Paints shares rose the most by 4%. Shares of M&M, Bharti Airtel, ITC and Hindustan Unilever gained more than 1%. There was a rise in the Auto, FMCG and Pharma sectors of NSE.
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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