In terms of market capitalization, the value of 8 out of the top 10 companies of the country combined increased by Rs 1,55,603.45 crore last week. HDFC Bank and Tata Consultancy Services (TCS) were the top gainers during this period.
HDFC Bank's market cap increased by Rs 40,392.91 crore to Rs 13,34,418.14 crore during the week's trading. At the same time, the market cap of TCS increased by Rs 36,036.15 crore to Rs 15,36,149.51 crore.
Apart from this, the market cap of ICICI Bank, Infosys, Hindustan Unilever, ITC, Bharti Airtel and SBI also increased. Whereas, there was a decline in the market cap of LIC and Reliance.
Last week Sensex rose 1536.8 points and Nifty rose 374.55 points.
The 30-share Sensex of Bombay Stock Exchange (BSE) rose 1536.8 points (1.98%) during the week's trading. At the same time, the 50-share Nifty of the National Stock Exchange (NSE) has increased by 374.55 points or 1.59% in a week.
Out of 30 Sensex stocks, 29 were up and 1 was down. Out of 50 Nifty stocks, 49 were up and 1 was down. Except Nifty Media, all the sectoral indices of NSE closed with gains. IT and realty indices had risen the most.
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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