In last week's trading, 9 of the country's top 10 companies had a combined market capitalization of Rs. 2.01 lakh crore has increased. Among them, Bharti Airtel has benefited the most in the last week. Its market cap has increased by 54,282 crores to 9.30 lakh crores.
ICICI Bank's market cap has increased by Rs 29,662 crore to Rs 8.80 lakh crore. At the same time, the market cap of Tata Consultancy Services i.e. TCS increased by Rs 23,427 crore to Rs 16.36 lakh crore.
Apart from this, the market value of HUL, HDFC Bank, Infosys, ITC, Reliance Industries and SBI has also increased. However, only LIC's market value has declined. LIC's market cap has fallen by Rs 3,004 crore to Rs 6.54 lakh crore.
Sensex rose 2.10% last week The Sensex gained 2.10% or 1,707 points in the last trading week. On the last trading day of the week i.e. 13th September on Friday, the stock market saw a decline. The Sensex closed down 71 points at 82,890. The Nifty also closed down 32 points at 25,356.
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 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? From the market cap formula it is clear that it is calculated by multiplying the total number of shares issued 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).
