In terms of market valuation, the valuation of 6 out of the top-10 companies of the country has increased by Rs 2.03 lakh crore after last week's trading. Tata Consultancy Services (TCS) was the top-gainer during this period. The market cap of the company increased by Rs 62,574.82 crore to reach Rs 16.09 lakh crore.
At the same time, HDFC Bank added Rs 45,338 crore to its valuation, now the market cap of the largest private sector bank has reached Rs 14.19 lakh crore. The market capitalization of the country's largest company Reliance Industries has increased by Rs 26,185 crore to Rs 17.75 lakh crore during this period.
Airtel's value reduced by ₹16,720 crore
Whereas after last week's trading, the valuation of telecom company Bharti Airtel has declined by Rs 16,720 crore and the market cap of the company has come down to Rs 9.10 lakh crore. At the same time, the valuations of ITC, Hindustan Unilever and Life Insurance Corporation of India i.e. LIC have also declined.
The stock market had risen 1,907 points last week
Last week, Sensex saw a rise of 1907 points. There was flat trading in the stock market on December 6, the last trading day of the week. Sensex closed at 81,709 with a fall of 56 points. Nifty also fell by 30 points, it closed at the level of 24,677.
At the same time, BSE Smallcap closed at 57,050 with a gain of 342 points. Out of 30 Sensex stocks, 17 declined and 13 rose. Out of 50 Nifty stocks, 32 declined and 18 rose. In the NSE sectoral index, the metal sector closed with the highest gain of 1.23%.
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.
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Expected ups and downs in the stock market this week: From inflation rate data to foreign investment, 5 factors will decide the movement of the market.
There is expected to be ups and downs in the stock market this week. The market will keep an eye on factors ranging from retail and wholesale inflation rates to foreign investment. On Friday, the Monetary Policy Committee had kept the repo rate as it was, but reduced the CRR by 0.5%, its effect can also be seen in the market this week.
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