In terms of market capitalization, 6 of the country's top-10 companies were valued last week at a combined Rs. 1.07 lakh crore has increased. State Bank of India (SBI) has been the top gainer during this period. After one week of business, the bank's market cap has increased by Rs 36,100 crore to Rs 7.33 lakh crore.
Apart from SBI, the market cap of ICICI Bank, Reliance Industries, ITC and Hindustan Unilever has increased. Also, Infosys was the top loser during this time. The market cap of the company is Rs. 38,054 crore down to Rs. 7.31 lakh crore has happened.
Last week the market gained 321 points
On Friday (November 1), the last trading day of the week, the stock market was open for a one-hour special muhurta trading from 6:00 pm to 7:00 pm. The Sensex rose 335 points to close at 79,724. Also, the Nifty jumped 99 points to close at 24,304.
After trading, out of all 30 stocks in the Sensex, 26 were up, while 4 were down. Also, 42 out of 50 Nifty stocks rose. After one week of trading the market was up 321.83 points or 0.40%.
What is market capitalization?
Market cap is the value of any company's total outstanding shares i.e. all the shares currently held by its shareholders. It is calculated by multiplying the total number of shares issued by the company by the share price.
Market cap is used to classify stocks 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 outstanding shares) x (Share price)
How does market cap work?
Whether a company's shares will give profit or not is estimated by looking at many factors. One of these factors is market cap. Investors can know how big a company is by looking at the market cap.
The higher the market cap of the company, the better the company is considered. Stock prices rise and fall according to supply and demand. Therefore, market cap is the publicly 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 shares by the share price of the company. 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.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
