The market valuation of the country's three big banks – ICICI, HDFC and State Bank of India (SBI) has increased by Rs 69,879 crore after last week's trading. During this period, the market cap of 4 out of the top 10 companies of the country listed in the stock market has increased by Rs 81,151 crore.
Among these, ICICI Bank was the top gainer. The market cap of private sector lenders increased by Rs 28,495 crore during this period to reach Rs 8.90 lakh crore. Earlier the valuation of the company was Rs 8.61 lakh crore. During this period, the market cap of telecom company Bharti Airtel also increased by Rs 11,272 crore to Rs 9.72 lakh crore.
Reliance and Infosys are the top losers of the market Tech service providing company Infosys was the top loser of the market in the last week. The market cap of the company has decreased by Rs 23,314 crore to Rs 7.80 lakh crore.
At the same time, the market cap of the country's largest company Reliance Industries has decreased by Rs 16,645 crore to Rs 18.39 lakh crore.
Apart from these, the market cap of total 6 companies including Infosys, ITC, Hindustan Unilever, LIC has fallen by Rs 76,621 crore.
Stock market fell 156 points last week Last week, Sensex also fell by 156 points. On the last day of the week (Friday, October 18), the Sensex recovered 815 points from the day's low of 80,409. After the day's trading, it closed at 81,224 with a gain of 218 points.
Nifty also recovered 287 points from the day's low of 24,567. Nifty also gained 104 points and closed at the level of 24,854. The metal and bank sectors of NSE witnessed the biggest rise.
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 formula of market cap 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.
Graphics Source: VaskarAssets
