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- Airtel Top Gainer, Market Cap Surges ₹52,432 Cr; LIC, Bajaj Finance Also Rise
New Delhi44 minutes ago
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Due to improved sentiment in the global market, the market cap of 9 of the top 10 most valuable companies of the country has increased by a total of Rs 2.15 lakh crore last week. Amidst this rise, Bharti Airtel was the top gainer. The valuation of the company increased by Rs 52,432 crore to Rs 11.63 lakh crore.
LIC remained at second place. Its market cap increased by Rs 51,675 crore, taking its total valuation to Rs 5.56 lakh crore. The value of Bajaj Finance, Reliance, Larsen & Toubro, SBI, HDFC Bank, Hindustan Unilever and ICICI Bank has increased. Only the value of TCS has decreased.
3 main reasons for improving market sentiment
According to Ponmudi R, CEO of online trading and wealth tech firm ‘Enrich Money’, the Indian stock market has advanced its recovery this week. There are mainly 3 big reasons behind this…
- Reduction of geopolitical tensions and concerns.
- Softening of crude oil prices in the international market.
- Improvement in investor sentiment globally.
Ponmudi R said that although negotiations are still ongoing and the agreement is yet to be fully implemented, market sentiment has significantly improved due to reduction in geopolitical uncertainty.
Reliance is the most valuable company of the country
In terms of market cap, Reliance Industries still remains the most valuable domestic company in the country. After this comes HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.
Sensex had risen 1.68% last week
Last week, the Sensex had risen 1,274.95 points or 1.68%. On Friday, the Sensex fell by about 607 points and closed at the level of 76,802. Nifty also fell by 154 points, it closed at the level of 24,013.
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 increases 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, it may incur losses.
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