Last week, the combined market valuation of nine of the top 10 most valuable companies increased by Rs 2,29,589.86 crore. Life Insurance Corporation of India (LIC) was the top gainer during this period.
LIC's valuation increased from Rs 60,656.72 crore to Rs 6,23,202.02 crore. Whereas HDFC Bank's valuation increased by Rs 39,513.97 crore, taking its market cap to Rs 13,73,932.11 crore. However, Infosys' mcap declined by Rs 18,477.5 crore.
Sensex rose 685 points last week
Between the last trading week (25 to 29 November), the Sensex rose by 685 points. On November 29, the last trading day of the week, the Sensex closed at 79,802 with a rise of 759 points (0.96%). There was a rise of 216 points (0.91%) in Nifty, it closed at the level of 24,131.
Out of 30 Sensex stocks, 26 rose and 4 declined. Out of 50 Nifty stocks, 43 were up and 7 were down. Except NSE Realty and PSU, all closed with gains.
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 market cap formula 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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