Last week, nine of the top 10 most valuable companies had a combined market valuation of Rs. 2,29,589.86 crores was increased. Life Insurance Corporation of India (LIC) was the most profitable during this period.
LIC's valuation is Rs. 60,656.72 crore to Rs. 6,23,202.02 crores. While the valuation of HDFC Bank is Rs. 39,513.97 crores to its market cap of Rs. 13,73,932.11 crores. However, Infosys has a market cap of Rs. 18,477.5 crore was reduced.
Sensex rose 685 points last week The Sensex rose 685 points between the last trading week (25 to 29 November). On November 29, the last trading day of the week, the Sensex closed at 79,802, up 759 points (0.96%). The Nifty rose 216 points (0.91%) to close at 24,131.
Out of 30 Sensex stocks, 26 advanced and 4 declined. Out of 50 stocks in Nifty, 43 were up and 7 were down. NSE closed with gains except realty and PSUs.
What is market capitalization? Market cap is the value of any company's total outstanding shares, i.e. all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of 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 shares outstanding) 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. Stock prices rise and fall according to supply and demand. Therefore, market cap is the publicly perceived value of a company.
How does market cap fluctuate? From the market cap formula it is clear 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).
