In terms of market capitalization, the value of 8 out of the top 10 companies of the country has combined reduced by Rs 1.65 lakh crore in the last week. HDFC Bank remained the top loser during this period. During the week's trading, the market cap of the bank has decreased by Rs 46,729.51 crore to Rs 12.94 lakh crore.
Apart from HDFC Bank, State Bank of India (SBI) was the second biggest loser. The market cap of SBI has fallen by Rs 34,984.51 crore in a week to Rs 7.17 lakh crore. Apart from these, the market cap of Hindustan Unilever, Reliance Industries, ITC, Bharti Airtel, LIC and ICICI Bank has also decreased.
At the same time, Infosys was the top gainer during this period. The value of Infosys increased by Rs 13,681.37 crore during this period to reach Rs 7.73 lakh crore. Apart from this, the market cap of TCS increased by Rs 416.08 crore to Rs 15 lakh crore.
Last week Sensex fell 1,906 points
Last week the Sensex has fallen 1,906.01 points or 2.39%. The stock market remained closed on Friday i.e. 15th November due to the holiday of Guru Nanak Jayanti. Earlier on Thursday (November 14), the Sensex closed at 77,580 with a fall of 110 points. There was also a fall of 26 points in Nifty, it closed at the level of 23,532.
However, BSE Smallcap rose 429 points to close at 52,381. Out of 30 Sensex stocks, 17 were in decline and 13 were up. Out of 50 Nifty stocks, 29 were in decline and 21 were in rise. In the NSE sectoral index, the FMCG sector had fallen the most by 1.53%. Whereas, the media sector had the highest increase of 2.26%.
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 market cap formula 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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