Mumbai1 hour ago
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In terms of market capitalization, the value of 8 of the top 10 companies of the country has declined by a combined Rs 1,66,954.07 crore (Rs 1.66 lakh crore) last week. During this period, a big decline was seen in the valuation of Reliance Industries.
During the week’s trading, the valuation of Mukesh Ambani’s company has decreased by Rs 33,930.56 crore. Now the company’s market cap is Rs 19.95 lakh crore. Earlier, the company’s market cap was Rs 20.29 lakh crore.
Hindustan Unilever’s value increased by Rs 12,946.24 crore
Apart from Reliance, the valuations of LIC, State Bank of India (SBI), Tata Consultancy Services (TCS), Infosys, Bharti Airtel, ICICI Bank and HDFC Bank also declined during the last trading session. At the same time, the market cap of Hindustan Unilever and ITC Limited increased by Rs 21,352 crore combined during this period.
Hindustan Unilever’s market cap has increased by Rs 12,946 crore to Rs 6.46 lakh crore. At the same time, ITC’s valuation has increased by Rs 8,406 crore to Rs 6.20 lakh crore.
The market fell 1,276 points last week
On the last trading day of the week, August 9, the stock market witnessed a boom. The Sensex closed at 79,705 with a gain of 819 points. At the same time, the Nifty also gained 250 points and closed at 24,367.
Out of the 30 Sensex stocks, 27 rose and 3 fell. Out of the 50 Nifty stocks, 45 rose and 4 fell. In the last week’s trading, the Sensex fell by a total of 1,276 (1.57%) points.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, that is, all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company with the stock price.
Market cap is used to categorise company stocks to help investors choose them based on their risk profile, such as 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 stock will give profit or not is estimated by looking at several factors. One of these factors is market cap. Investors can find out how big the company is by looking at the market cap.
The higher the market cap of a company, the better it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the public 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 with the stock price. That is, if the share price increases, the market cap will also increase and if the share price decreases, the market cap will also decrease.
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